How much tax could you pay when selling shares, cryptocurrency or property in Luxembourg?
The Finorum Luxembourg Capital Gains Tax Calculator estimates the tax treatment of capital gains for private individuals under Luxembourg’s 2026 rules. Enter the purchase price, sale price, associated costs and holding period to calculate your estimated taxable gain and potential tax.
Luxembourg does not apply one fixed capital gains tax rate. The result depends on the type of asset, how long it was held, the size of any company participation and the taxpayer’s total taxable income.
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How Capital Gains Are Taxed in Luxembourg
Capital gains earned through the normal management of private wealth are generally classified as miscellaneous income when they are taxable.
The first step is to calculate the realised gain:
Capital gain = Sale proceeds − Acquisition price − Eligible transaction costs
A taxable gain is normally added to the taxpayer’s income and taxed at the applicable progressive income tax rate. Luxembourg’s personal income tax scale reaches 42%, before applicable surcharges and the 1.4% long-term care insurance contribution.
However, longer-held assets may qualify for an exemption or taxation at half the taxpayer’s overall rate.
Capital Gains on Shares and Securities
Luxembourg distinguishes between securities held for no more than six months and those held for longer than six months.
Shares Held for Six Months or Less
A gain from shares or securities sold within six months of acquisition is treated as a speculative gain. It is taxable at the taxpayer’s ordinary progressive income tax rate, regardless of the percentage owned in the company.
The tax is calculated on the full net gain after eligible acquisition and disposal costs.
Total speculative gains below €500 during the calendar year are not taxable. This is a threshold rather than a €500 deduction: once the applicable total exceeds the threshold, the full taxable amount may enter the calculation.
Shares Held for More Than Six Months
For a standard portfolio investment representing no more than 10% of the company’s capital, a private capital gain is generally exempt once the shares have been held for longer than six months.
This rule can make the holding period particularly important for private investors.
Luxembourg · Standard Portfolio Shares — A gain on a participation of no more than 10% is generally exempt when the investment has been held for longer than six months. TAX FREE ✓
Dividends remain separate from capital gains and may still be subject to income tax even when the eventual disposal gain is exempt.
Substantial Participations
Different rules apply when the investor has held a substantial participation in a company.
A participation is considered substantial when the taxpayer—alone or together with a spouse, registered partner and minor children—held more than 10% of the company’s capital at any point during the five years preceding the sale.
When a substantial participation is sold after more than six months, the gain is generally taxable at half the taxpayer’s overall income tax rate.
A maximum rate of approximately 21.4% or 21.8% may therefore apply, depending on the taxpayer’s circumstances and applicable surcharge.
A €50,000 allowance may be available for qualifying long-term gains. It can be doubled to €100,000 for married couples or registered partners assessed jointly. This is a ten-year allowance and is reduced by qualifying allowances already used during the preceding ten years.
The official treatment of securities is explained by Guichet.lu.
Cryptocurrency Gains in Luxembourg
Luxembourg does not treat cryptocurrency as legal currency for income-tax purposes. Gains are instead assessed according to the nature of the activity and the rules applicable to private disposals.
For an occasional private investor, a cryptoasset sold or exchanged within six months of acquisition can produce a taxable speculative gain. The gain is generally taxed at ordinary progressive income tax rates when the combined annual speculative profit reaches the applicable taxable threshold.
Cryptoassets held for longer than six months may generally be sold tax-free when they form part of the taxpayer’s private wealth and the activity does not qualify as a commercial business.
Luxembourg · Private Cryptocurrency — An occasional private gain may generally be exempt when the cryptoasset has been held for longer than six months. TAX FREE ✓
Selling cryptocurrency for euros is not the only transaction that can produce a disposal. Exchanging one cryptoasset for another or using cryptocurrency to purchase goods may also require the value of the transaction to be determined in euros.
Frequent trading, mining, professional organisation or activity carried out with a clear commercial character may be taxed as business income instead. The Luxembourg tax authority provides further guidance in its official circular on virtual currencies.
Capital Gains on Property
For property sales in 2026, Luxembourg generally distinguishes between real estate held for up to five years and property held for more than five years.
Property Held for Five Years or Less
A gain on property sold within five years of acquisition is generally treated as a speculative gain. It is added to taxable income and taxed at the ordinary progressive income tax rates.
Acquisition costs, eligible improvement costs and disposal expenses may reduce the taxable gain when properly documented.
Property Held for More Than Five Years
A gain on private real estate sold after more than five years is generally treated as a long-term capital gain. It is not automatically tax-free, but it may be taxed at half the taxpayer’s overall income tax rate.
The €50,000 individual allowance—or €100,000 allowance for qualifying jointly assessed couples—may also apply, subject to the ten-year usage limit.
A temporary reduced holding-period rule applied to certain disposals during the first half of 2025. It should not be used as the standard rule for property sold in 2026.
Main Residence Exemption
A qualifying main residence can generally be sold free of capital gains tax regardless of the holding period.
The exemption can apply when the property is occupied by the taxpayer at the time of sale. It may also remain available in certain cases where the taxpayer moved before the sale, provided the statutory occupation and timing requirements are satisfied.
Luxembourg · Main Residence — The sale of a qualifying principal residence is exempt from capital gains tax regardless of the holding period. TAX FREE ✓
The sale must nevertheless be reported in the income tax return. A second home, rental property or investment property does not automatically qualify.
Current property rules and the principal-residence conditions are described by Guichet.lu.
How Capital Losses Are Treated
Eligible capital losses may generally be offset against taxable gains within the relevant miscellaneous-income category.
However, a private capital loss cannot normally reduce employment income or other unrelated categories of taxable income. Unused losses are generally not carried forward into future tax years.
Records should include:
- Purchase and sale dates
- Acquisition and disposal prices
- Brokerage and transaction fees
- Ownership percentage for company shares
- Property improvement costs
- Crypto transaction values in euros
- Documents supporting any claimed exemption
Luxembourg Capital Gains Tax Example
Assume a Luxembourg resident purchases portfolio shares for €30,000 and later sells them for €42,000, with €500 in eligible transaction costs.
The calculated gain is:
€42,000 − €30,000 − €500 = €11,500
If the shares represented less than 10% of the company and were held for longer than six months, the private gain would generally be exempt.
If the same shares were sold within six months, the €11,500 speculative gain could instead be taxed at the investor’s ordinary progressive income tax rate.
This demonstrates why the holding period and ownership percentage must be entered correctly.
Residents, Non-Residents and Cross-Border Assets
Luxembourg residents may have to consider gains from Luxembourg and foreign assets. Non-residents are generally taxed only where Luxembourg retains taxing rights, although disposals of Luxembourg property and certain substantial company participations can remain taxable.
A double taxation agreement may determine whether Luxembourg or another country has the primary right to tax the gain. It may also provide a tax credit or exemption mechanism.
The calculator provides a domestic Luxembourg estimate and does not automatically resolve treaty residence, foreign tax credits, exit taxation or dual-residence questions.
Calculation Assumptions
Unless otherwise stated, the calculator assumes that the user:
- Is an individual managing private assets
- Is tax resident in Luxembourg
- Is not acting through a company
- Is not carrying on a professional trading business
- Has entered eligible acquisition and disposal costs correctly
- Has no additional exemption beyond the selected options
- Is completing a disposal during the 2026 tax year
Actual tax may differ because Luxembourg capital gains are often taxed using the individual’s overall income tax rate.
Important Notice
The Finorum Luxembourg Capital Gains Tax Calculator provides an informational estimate and does not constitute tax, legal or investment advice.
Special rules can apply to business assets, inherited property, gifts, employee shares, investment funds, substantial participations, non-residents and cross-border transactions. Before completing a significant disposal, consult the Luxembourg Inland Revenue, a qualified accountant or a Luxembourg tax adviser.
Luxembourg capital gains tax calculator
Matias Buće has a formal background in administrative law and more than ten years of experience studying global markets, forex trading, and personal finance. His legal training shapes his approach to investing — with a focus on regulation, structure, and risk management. At Finorum, he writes about a broad range of financial topics, from European ETFs to practical personal finance strategies for everyday investors.