Belgium has not correctly implemented the rules relating to the calculation of rental income.
LBelgium was sentenced Thursday to a fine of 2 million euros and a fine of 7,500 euros per day, for failing to comply with a judgment of the Court of Justice of the European Union on the calculation of income rental property owners, announced the Court of Justice of the European Union (CJEU).
The European Commission brought an action against the Belgian state in July 2019 in this case. The European executive noted that Belgium did not correctly implement the rules relating to the calculation of rental income, in the sense of a judgment of the CJEU issued the previous year.
This situation can lead to differences in tax treatment and discourage Belgian residents from buying real estate abroad, the Commission said. More precisely, the CJEU had observed that there was “unequal treatment” due to the fact that the tax base was calculated on the basis of the cadastral income of the property in the event of a rental in Belgium, but on the basis of the real rental value. property for a house rented abroad. The latter is generally much higher than the cadastral income.
European justice has followed the Commission’s requests this week, imposing in a judgment issued on Thursday a fine and a penalty per day of non-compliance with the regulations.