Minister of Finance Vincent Van Peteghem (CD&V) announced in the House on Wednesday that he is looking for ways to solve the unequal tax on rental income.
Earlier this month, the European Court of Justice sentenced Belgium to a fine of 2 million euros and a penalty of 7,500 euros per day. That as long as our country does not equate the rules on the tax on rental income. Minister of Finance Vincent van Peteghem is working on a solution. He said this in the Chamber on Wednesday afternoon.
‘The administration is working on a solution to get rid of the unequal taxation of rental income. That solution will only apply to real estate abroad, ‘said Minister Van Peteghem. “Real estate located in Belgium will not be affected.”
Belgians who rent out real estate in their own country are now fairly taxed on the basis of the cadastral income. In fellow countrymen who rent out something abroad, they are taxed on the real rental income. An inequality that must be corrected, according to the European Court of Justice. The cadastral income is lower than the real income, and therefore those who rent out real estate in their own country are favored.
Van Peteghem’s administration is currently still working on a solution to eliminate the difference in treatment. The minister assured this after questions from Vlaams Belang MP Wouter Vermeesch and PVDA MP Marco Van Hees in the Finance Committee.
What that solution will look like in concrete terms is not yet clear. It will “only relate to real estate located abroad.” The solution will soon be discussed within the new government, Van Peteghem said.