Difference in Belgian tax treatment of income from immovable property – contrary to EU law (free movement of capital)
On 12 April 2018, the Court of Justice of the European Union (CJEU), ruled that the difference in tax treatment of immovable income, depending on whether the property is located in Belgium or in another State, is not in line with EU law, as it constitutes a restriction on the free movement of capital. Based
President Trump signs Omnibus Spending Bill with Favorable Real Estate Tax Provisions
On 23 March 2018, President Trump signed the Consolidated Appropriations Act of 2018 (the Omnibus Act), an omnibus government spending bill which includes several technical corrections of previously enacted tax provisions related to FIRPTA, REIT spin-off transactions, REIT income tests and the partnership audit rules. The Omnibus Act also includes new low-income housing tax credit
Update: It’s a go for the option to apply VAT on ‘new’ immovable letting!
This weekend, the core cabinet of the Belgian Government (finally) reached an agreement on the possibility for landlords to apply VAT on certain immovable lettings. With a view of raising our country’s and the markets’ competitiveness, the Belgian Government has for quite some time been juggling (and struggling) with the idea to apply VAT on
New Double Tax Treaty between France and Luxembourg: impact on real estate structures
On March 20, the Luxembourg and French Governments have signed, amongst other, a new double tax treaty (DTT), together with an accompanying Protocol. The new DTT seeks to modernise the rules applying. The current treaty between Luxembourg and France was signed as long ago as 1 April 1958. The new DTT is fully “post-BEPS”. It
Belgian tax reform reduces corporate rate to 25% and introduces fiscal consolidation
On 26 July 2017, the federal government reached an agreement on an important tax, economic and social reform package. A significant gradual reduction in the corporate income tax rate to 25% in 2020 and fiscal consolidation are key components of the package. The agreement preserves the notional interest deduction. The tax reform is built around
Belgian tax reform: impact on the real estate industry
Yesterday, the Belgian government reached an agreement on several tax measures, including a corporate tax reform and the introduction of an option to apply VAT on immovable letting. Although these measures will be developed further in detail in the coming months, it is already certain they will have an important impact on the Belgian real
Belgium decides to reduce corporate tax rate from 34% to 25%
Remark: The following announced measures will have to be formalised in draft legislation which should only be available as from September/October. Only then will full details be known. On 26 July 2017, the Federal government reached an agreement on an important corporate tax reform, significantly reducing the corporate tax rate. More details will follow below.
Draft Law amending the regime for B-REITs (regulated real estate companies) submitted to the Belgian Parliament
On 27 June 2017, a draft Law on Belgian REITs (the so-called Regulated Real Estate Companies or B-REITs) was submitted to the Belgian federal Parliament. The draft Law amends the existing regime for public and institutional B-REITs and introduces a new category of B-REITs with social purpose. What’s new? The majority of the new provisions
