Reform of the taxation of individuals' real estate capital gains: 16% flat rate paid on sale

Article 10 of the 2004 Finance Act replaces Articles 150 U to 150 VA of the General Tax Code with Articles 150 U to 150 VH. Individuals' real estate capital gains are taxed at a flat 16% rate (Article 200 B) instead of the income tax schedule, and the tax is paid on sale (Article 150 VF). The gross gain is reduced by 10% for each year of ownership beyond the fifth. Sales for €15,000 or less are exempt. Sellers may use a flat 7.5% of the purchase price for acquisition costs and, after five years of ownership, a 15% uplift for works. The scheme applies to sales from 1 January 2004.