I want to sell a property which I own. Will I have to pay capital gains tax?
Article ID: 162 | Last Updated: Thu, Jan 22, 2015 at 9:46 AM
I lost my job in Amsterdam and only worked until 20 Jan 2011, but I understand that I still need to fill in a tax return.
To cope financially, I sold an apartment in London. Should I declare this on my tax return? Will the Dutch tax man look for any form of capital gains tax?
In the Netherlands there is no capital gains tax for individuals. If you sell your property with a profit, this profit will remain tax free. The same if you sell your car and anything else.
It becomes different if your activities can be seen as a business. In that case the profit is taxable. There is a grey area between acting as an individual and as a business. This depends on the amount of work you do related to the property and to specific knowledge you may have about selling a property. Owning ten properties can still be seen as an investment, but if you spend a lot of time yourself on the maintenance of the properties and on renting it out the activities can be seen as more than normal investment management. So it depends on the actual circumstances how the income will be treated, but if you have only one or two properties you should not have to worry about capital gains tax.