Which works are deductible ?

The cost of the work done on the property can be deducted :

-> Either for their real cost, by producing all the invoices with legal mentions (art. 289 Tax Code) and proof of payment (bank statements).

• Only expenses relating to construction, reconstruction, improvement or extension works are deductible.

Warning :

• Repair and maintenance work can never be deducted from the capital gain calculation,
• Expenses which have already been deducted for income tax purposes are excluded,
• Expenses relating to improvement work can never be deduced if the seller is a company.
• You have to produce company invoices with legal mentions (art. 289 Tax Code)

Warning :

• Owner's personal labour costs is excluded,
• Material bought by the taxpayer and paid labour costs are excluded. The cost of materials can eventually be taken into account, but only if you bought land and if you are selling a building.
• You have to produce proof of payment (bank statements)

-> Or in a 15% lump sum of the acquisition price when the property is sold 5 years after its initial purchase (and if it was not just some piece of land).

Warning :

• 15% lump sum cannot be used if the seller is a company