Notary fees and capital gains on sale

The sale of property in Brussels gives rise to costs for both seller and buyer, and the question of capital gains tax arises whenever the property has increased in value since acquisition. This page clarifies the allocation of notarial costs and the capital gains tax regime applicable in the Brussels-Capital Region.

Allocation of notary fees

What the buyer pays

In Belgium, notary fees in the broad sense are primarily payable by the buyer. They comprise:

• Registration duties: 12.5% of the sale price in the Brussels Region (with a possible abatement of €200,000 for the buyer’s principal and sole residence)
• Notary’s fees: fixed by a statutory sliding scale (approximately 1 to 1.5% of the sale price)
• Administrative and search costs: mortgage transcription, cadastral searches, planning verifications (approximately €800 to €1,500)

In total, the buyer must budget between 14 and 16% of the purchase price in fees (or considerably less if the abatement applies).

What the seller pays

The seller’s costs are limited but not negligible:

• Mortgage discharge: if a mortgage is still outstanding, the discharge costs approximately 0.5 to 1% of the original registered amount
• Share of deed drafting costs: in some cases, the seller bears part of the drafting costs
• Early repayment of the loan: the bank may charge an early repayment indemnity (maximum 3 months’ interest)
• Certificates and reports: EPC (€250–400), soil certificate (€50–100), any additional diagnostics

Capital gains tax on property in Belgium

The principle: no capital gains tax on normal estate management

In Belgium, unlike France, the gain made on the sale of real property is in principle not taxed if the sale is considered to fall within the normal management of a private estate. This is typically the case for an owner who sells their principal residence after living there for several years.

The exceptions: when capital gain is taxed

Several situations trigger capital gains taxation:

Capital gain on undeveloped land (held less than 5 years)

The sale of undeveloped land held for less than 5 years generates a taxable capital gain at 33% (plus communal surtaxes). Between 5 and 8 years of ownership, the rate falls to 16.5%. Beyond 8 years, the gain is no longer taxed.

Capital gain on a built property (held less than 5 years)

The sale of a built property within 5 years of acquisition is taxed at 16.5% (plus communal surtaxes) on the net gain (sale price minus acquisition price minus costs minus justified works).

Speculative capital gain

If the tax authority characterises the transaction as property speculation (rapid buy-and-sell with profit intent, repeated transactions), the gain may be taxed as miscellaneous income at 33%, or even reclassified as professional income (progressive rates).

Calculating the net capital gain

The net capital gain is calculated as follows:

Net capital gain = Sale price – (Acquisition price + Acquisition costs + Justified works + 25% flat rate or actual costs)

Acquisition costs include the registration duties paid on purchase. Works must be supported by invoices. The 25% flat rate (or 5% per year of ownership beyond the fifth year) applies in the absence of proven actual costs.

Frequently encountered special cases in Brussels

Sale of a property received by inheritance

Where the property was acquired by inheritance, the acquisition price used is the value declared in the inheritance declaration. If this value was understated and the tax authority has revised it upwards (which is common in Brussels where succession duties are high), the corrected value is the one used. An expert valuation at the time of the inheritance establishes a defensible value.

Sale of a property received by gift

The 5-year period for capital gains purposes runs from the date of the gift (not from the donor’s original acquisition date). The reference value is that established in the deed of gift.

Sale by a company

A capital gain realised by a company is always included in the taxable result for corporation tax purposes (25%). The rules therefore differ fundamentally from those applicable to private individuals.

The importance of a reliable valuation

Whether for anticipating the tax implications or for setting the sale price, a professional valuation is the basis of a controlled transaction. Our property estimation service positions your property in the current market, while a pre-sale expert valuation provides a reasoned document useful for negotiation and tax planning.

Contact our practice to anticipate the financial implications of your sale.

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