Foreign real estate now also taxed

Foreign real estate now also taxed on the basis of cadastral income

News

Also in: Dutch

30-03-2021

Following several convictions by the European Court of Justice, Belgium recently changed its legislation on the taxation of foreign real estate. The aim is to tax foreign real estate owned by Belgian residents in the same way as Belgian real estate, with the cadastral income (i.e. the deemed rental income) as taxable basis (“kadastraal inkomen” / “revenue cadastral”).

For the implementation, the competent authority within the Federal Public Service Finance will determine a cadastral income for foreign real estate owned by Belgian residents by March 2022. The relevant taxpayers will be contacted to collect the necessary information.

By taxing foreign real estate on the basis of the cadastral income, the overall tax burden for the Belgian taxpayer will in principle decrease.

We provide you with an overview of the changes made and a report on the current situation!

We will keep you informed of any further developments!