Taxation of Immovable Property Income in Belgium

For decades, the Belgian personal income tax distinguished between income from foreign and domestic immovable property. Whereas for foreign immovable property the tax base attended to reflect real market values, income from domestic immovable property was determined on a lump sum basis, deducted from a market value of the immovable property in 1975 and subsequently indexed. As the lump sum estimation was substantially lower, the tax base for domestic immovable property income was reduced and hence investing in foreign immovable property was discouraged. Although already a decade ago the Europe... Mehr ...