Cadastral income for properties abroad?
On 12 November 2020 the European Court of Justice (ECJ) imposed a lump-sum fine of EUR 2 million and a daily penalty of EUR 7.500 for each day that the Belgian tax authorities continue to maintain a difference in tax treatment for rental income depending on whether the property is located in Belgium or abroad.
EU case law – Discriminatory tax treatment of foreign real estate income
According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are taxable on the indexed deemed rental income of the property (also known as “kadastraal inkomen” / “revenu cadastral”, which is significantly