Part of:
Real estate as investment in Belgium
📅 Last updated: 8 May 2026
· 🏷 Topic: Second home, holiday property, capital-gains tax
· 🇧🇪 For: Belgian second-home owners
A second home in Belgium (a holiday property at the coast, a country house in the Ardennes) is treated differently for tax purposes than a family home. Two important rules: annual cadastral-income taxation + a capital-gains rule when sold within 5 years.
Annual taxation
A second home is taxed on its indexed cadastral income +40% — just like properties rented out to private individuals.
Cadastral income (kadastraal inkomen): a notional “value” assigned by the Belgian tax authorities, generally well below the actual rental value.
Property tax (onroerende voorheffing): in addition, you pay annual regional property tax (varies by region) on your second home.
The 5-year rule — capital gains taxed
Sale of second home within 5 years of purchase:
– 16.5% capital-gains tax on the difference between the sale and purchase price.
– Purchase price is increased by indexation + invoiced renovation costs.
Sale after 5+ years:
– Full exemption from federal capital-gains tax for private individuals managing their normal personal assets.
– ⚠️ Important: the new 10% capital-gains tax (since 2026) does not apply to direct real estate. Its scope is limited to financial assets (securities, UCIs), certain insurance contracts, crypto-assets and currencies. Direct real estate (including second homes) is expressly excluded.
Professional speculation (real-estate flipping as a business): taxed as miscellaneous income at 33%.
Acquisition costs
| Cost item | Flanders | Brussels | Wallonia |
|---|---|---|---|
| Registration duty (second home) | 12% | 12.5% | 12.5% |
| Notary + fees | ~1-2% | ~1-2% | ~1-2% |
On a second home of €250,000 in Flanders: statutory registration duty 12% × €250,000 = €30,000; notary fees + admin ~€3,000–€4,000 = total transaction costs ~€33,000–€34,000, i.e. ~13.6% of the purchase price (the registration duty itself is 12%, not 13%).
Inheritance and gifting
On death, the second home falls within the ordinary inheritance with region-specific rates that rise sharply depending on the degree of kinship (see Erfenisbelasting per Gewest(NL) for exact scales). Consult a notary for your specific situation.
With gifting during your lifetime, this can be more tax-efficient — ask a notary.
Second home vs shares — tax comparison
| Second home | Equity ETF | |
|---|---|---|
| Acquisition cost | 13-15% | 0.12-1.32% TOB |
| Annual tax | CI × 1.4 + property tax | 0% (only on dividends) |
| On sale | 16.5% within 5 yrs; thereafter 0% federal (new 10% CGT does not apply to direct real estate) | 10% > €10k exemption |
| Maintenance costs | €2-5k/year | 0.2% TER |
| Liquidity | Months to sell | Immediate |
💡 A second home is, for most Belgians, more a lifestyle enjoyment than a pure investment. The fiscal and operational costs rarely make it the optimal investment — but for those who also use the property, that’s not a problem.
🔗 See Real estate as an investment and Eigen woning kopen vs huren(NL).
Frequently asked questions
How is a second home in Belgium taxed annually?
A second home is taxed on its indexed cadastral income +40% — just like properties rented out to private individuals. On top of that, you pay annual regional property tax (onroerende voorheffing), which varies by region.
What exactly is cadastral income?
Cadastral income (kadastraal inkomen) is a notional “value” assigned by the Belgian tax authorities to a real-estate asset. It is generally well below the actual rental value, but for a second home it is indexed and increased by 40% to determine the taxable base.
How much capital-gains tax do I pay if I sell within 5 years?
16.5% capital-gains tax on the difference between the sale and purchase price, if you sell the second home within 5 years of purchase. The purchase price is increased by indexation and invoiced renovation costs, which reduces the taxable gain.
What if I only sell my second home after 5 years?
For sales after more than 5 years, there is a full exemption from federal capital-gains tax for private individuals managing their normal personal assets. The new 10% capital-gains tax (since 2026) does not apply to direct real estate — its scope is limited to financial assets, certain insurance contracts, crypto-assets and currencies. Direct real estate, including second homes, is expressly excluded.
What registration duty applies to a second home in each region?
Registration duty on a second home is 12% in Flanders, 12.5% in Brussels and 12.5% in Wallonia. On top of that, notary fees and charges come to roughly 1–2% of the purchase price.
What are the total acquisition costs on a €250,000 second home?
On a second home of €250,000 in Flanders, you pay statutory registration duty of 12% × €250,000 = €30,000, plus notary fees + admin of ~€3,000–€4,000. Total transaction costs: ~€33,000–€34,000, i.e. ~13.6% of the purchase price (the registration duty itself is 12%, not 13%).
What if I do real-estate flipping as an activity?
Professional speculation — real-estate flipping as a business — falls outside the ordinary capital-gains rules and is taxed as miscellaneous income at 33%. This applies regardless of the 5-year rule.
What happens to my second home on death or gifting?
On death, the second home falls within the ordinary inheritance with region-specific rates that rise sharply depending on the degree of kinship. With gifting during your lifetime, this can be more tax-efficient — consult a notary for your specific situation.
Sources
- FPS Finance — Real-estate income
- Notaris.be — Second home and acquisition costs
- Vlaamse Belastingdienst — Property tax
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