Luxembourg capital gains tax calculator

There is no single flat rate. A private disposal held six months or less (for a movable asset) or inside the property holding edge is speculative income, added to your other income and taxed on the ordinary progressive scale from 0% to 42%. A significant shareholding held more than six months, or property held beyond the edge, is a capital gain taxed at half of the overall rate corresponding to your total income, with a statutory ceiling of 22.47% or 22.89% for a significant shareholding and 22.47% for property (10.5% for a property gain realised between 1 January 2024 and 30 June 2025). The ceilings include the employment-fund contribution.

The overall rate is the average rate of the ordinary scale on your total income including the gain. Article 131(1)(c) of the Income Tax Act taxes the capital gain at one half of that rate. Your salary therefore matters: the higher your other income, the higher the overall rate, up to the published ceiling. This calculator stacks the gain on the income you enter and halves the resulting average rate, then applies the ceiling.

A property sale must be declared on form 700 with form 100 for the year of the notarial deed, whether or not the gain is exempt. The main-residence exemption does not remove the reporting duty. A securities or crypto sale that is not taxable does not have to be reported.

Two mechanisms, not one flat rate. A disposal of a movable asset is speculative income under LIR art. 99bis when the interval between acquisition or constitution and realisation does not exceed six months; art. 99bis(1) states 'ne depasse pas ... six mois pour les autres biens', and the ACD crypto circular L.I.R. 14/5-99/3-99bis/3 of 26 July 2018 repeats that a non-business crypto disposal is speculative when the interval 'ne depasse pas une periode de six mois'. The boundary is therefore inclusive: a disposal on the day exactly six months after acquisition is still speculative. The Guichet shares table states the edge the other way round ('fewer than 6 months' against 'more than 6 months') and leaves the exact six-month day undescribed; the circular's inclusive reading governs the calculator and the shares-table wording is the ambiguity the engine header, the record and the page carry. Source: https://impotsdirects.public.lu/dam-assets/fr/legislation/legi18/circulaireLIR14-5-99-3-99bis-3du26072018.pdf

A shareholding in a company (shares, capital parts, beneficiary parts or any other participation in a collective body, including fund units and ETFs) is a significant shareholding when the seller, alone or with a spouse or partner and minor children, held directly or indirectly more than 10% of the capital or, absent capital, of the company's social fund at any time in the five years before the disposal (LIR art. 100(2)). The calculator reads this as a per-sale toggle, default not significant. Source: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html

A listed or unlisted participation held for MORE than six months is EXEMPT when it is not a significant shareholding (art. 100 taxes only a significant participation held more than six months); held six months or less it is speculative income at the ordinary progressive scale regardless of the percentage held. The Guichet table records exactly these two outcomes (exemption for holdings below 10%, half the overall rate for significant holdings over six months). Source: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html

The capital gain on a significant shareholding held more than six months (art. 100) and the capital gain on property held beyond the holding edge (art. 99ter) are extraordinary income under art. 132(2) and are taxed by art. 131(1)(c) at a rate equal to ONE HALF of the overall rate corresponding to the adjusted taxable income ('un taux egal a la moitie du taux global correspondant au revenu imposable ajuste'). The overall rate is the average rate of the ordinary tariff on the adjusted taxable income (ordinary income plus the extraordinary income), so the computation stacks the gain on the year's salary and halves the resulting average rate. The Guichet publishes the maximums as 21.40% or 21.80% for a significant shareholding and 21% for property, figures that derive from the pre-2017 scale whose top rate was 40%; on the current 42% scale the statutory ceilings, including the employment-fund surcharge, are 22.89% for a significant shareholding and 22.47% for property (PwC: "maximum 22.89%, including the solidarity tax"); these are ceilings on the effective rate, never a flat rate. Sources: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html ; https://taxsummaries.pwc.com/luxembourg/individual/income-determination

The Guichet guidance publishes the maximum overall rates as 42.80% or 43.60%, whose halves are 21.40% and 21.80%, but those figures derive from the pre-2017 scale whose top rate was 40% (40% increased by the 7% and the 9% employment-fund contribution). The top rate of the current scale is 42%, so the statutory maximum overall rates are 44.94% (42% plus the 7% contribution) and 45.78% (42% plus the 9% contribution), and the calculator caps a significant shareholding's effective rate at the outer half, 22.89%, records the 22.47% standard half, and caps a long-held property gain's effective rate at 22.47% (PwC: "maximum 22.89%, including the solidarity tax"). The employment-fund contribution and the 1.4% long-term care contribution the Guichet says are also due are computed by the ACD and are not modelled. Sources: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html ; https://taxsummaries.pwc.com/luxembourg/individual/income-determination

The EUR 500 annual threshold sits on the year's AGGREGATE speculative profit, not on each sale: art. 99bis(2) states that speculative profits 'ne sont pas imposables, lorsque le benefice total realise pendant l'annee civile est inferieur a 500 euros'. It is a threshold, not an allowance: a total below EUR 500 is not taxed at all, and once the year's total reaches EUR 500 the profit is taxable, with no EUR 500 deduction. The ACD crypto circular repeats the same wording. Source: https://impotsdirects.public.lu/dam-assets/fr/legislation/legi18/circulaireLIR14-5-99-3-99bis-3du26072018.pdf

The EUR 50,000 ten-year allowance of art. 130(4) (doubled to EUR 100,000 for spouses or partners taxed jointly) reduces the sum of the income from arts. 99ter to 101 and is itself reduced by the allowances granted in the preceding ten years. The allowance remains available in every tax year (LIR art. 130(4); PwC: "a tax deduction of up to EUR 50,000 ... valid every ten years may be claimed"): the Guichet sentence that for tax years 2023 to 2031 inclusive no allowance is available is a worked example for a taxpayer who exhausted the whole allowance in 2022, not a statutory suspension, so every record from 2021 to 2027 carries the allowance and the engine grants it. The ten-year reduction is not tracked across returns by this calculator (a documented gap). Sources: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html ; https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html ; https://taxsummaries.pwc.com/luxembourg/individual/income-determination

Property: LIR art. 99bis(1)(a) treats an immovable as recently acquired when the interval between acquisition and realisation does not exceed the holding edge, and art. 99ter taxes the gain on a sale MORE than the edge after acquisition. The edge was TWO years through 2024; the statute in force from 1 January 2025 sets FIVE years, with a transitional derogation keeping the two-year edge for immovables realised between 1 January 2025 and 30 June 2025 (and, where a preliminary sale agreement was registered by 30 June 2025, between 1 July 2025 and 30 September 2025). The calculator models the two-year edge for sales up to 30 June 2025 and the five-year edge from 1 July 2025; the conditional July-September extension is a documented gap. Source: https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html

Property sold beyond the holding edge is a capital gain taxed at half the overall rate, with the maximum effective rate at 22.47% (half of the 44.94% maximum overall rate, the 42% top rate of the current scale plus the 7% employment-fund surcharge). For income generated between 1 January 2024 and 30 June 2025 the maximum is 10.5%, a quarter of the overall rate. The calculator reads the disposal date into the window. Source: https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html

The sale of a taxpayer's main residence is exempt from income tax regardless of the length of time the property is held (art. 99bis(3) and art. 99ter(6) read with art. 102bis), but the sale must still be declared to the ACD on form 700 with form 100. The calculator keeps the row and exempts the gain; it does not test the occupation, move or professional conditions. Source: https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html

Losses net within each group and cross only once, with nothing carried forward. Art. 102(13): losses from each of arts. 99ter to 101 offset positive income from those same articles, and the excess from the combined arts. 99ter to 101 income offsets only a positive income from art. 99bis. Art. 102(14): an art. 99bis loss offsets positive art. 99bis income, and the excess offsets only the combined arts. 99ter to 101 income. Any loss still left cannot touch employment or other income and cannot be carried into a later year. Sources: https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/capitaux-mobiliers/banque-dividende-interets/achat-vente-actions.html and https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html

The taxable event is dated by the notarial deed, not by payment: a property sale is declared for the year of the deed (form 700 with form 100). Source: https://guichet.public.lu/en/citoyens/fiscalite/immobilier/achat-vente-donation/declaration-vente.html

Crypto is an intangible asset, not currency: an exchange of virtual currency for fiat, for another virtual currency or for goods and services is a disposal (ACD circular L.I.R. 14/5-99/3-99bis/3). The circular directs that where individual identification of the units exchanged is difficult the acquisition price is determined by the weighted-average-cost method, expressly EXCLUDING first-in-first-out and last-in-first-out; this calculator matches imported ledgers first-in-first-out through the shared matcher, so a crypto figure computed from a FIFO import can differ from the circular's weighted-average reading (a documented gap). Frequent turnover, borrowed capital, an organised operation or dealing for third parties can make the activity commercial business income, which this calculator does not model. Source: https://impotsdirects.public.lu/dam-assets/fr/legislation/legi18/circulaireLIR14-5-99-3-99bis-3du26072018.pdf

The €500 threshold and the six-month general test are the same for other valuables (ordinary movable property) as for crypto under art. 99bis(1)(b); a movable held more than six months is not charged under the private capital-gains rules, and no separate private-valuables regime was identified. Source: https://impotsdirects.public.lu/dam-assets/fr/legislation/legi18/circulaireLIR14-5-99-3-99bis-3du26072018.pdf