nr.20074332 18/06/2015 Referral to Court Art. 258 TFEU
The Commission has decided to refer BELGIUM to the EU Court of Justice on account of its arrangements for taxing Belgian taxpayers who invest in immovable property abroad
The European Commission has decided to refer Belgium to the EU Court of Justice on account of its tax laws, which provide for different methods of assessing income from immovable property: income derived by a Belgian resident from property abroad is assessed at a rate higher than that applied to income from comparable property in Belgium.
The result is that, under Belgian law, investment in certain properties located in Belgium is treated advantageously, whereas taxpayers who choose to invest in similar properties in other Member States of the EU or of the European Economic Area (EEA) are penalised. This difference in tax treatment infringes the principle of the free movement of capital, which is enshrined in Article 63 of the TFEU and Article 40 of the EEA Agreement.
On 22 March 2012 the Commission sent Belgium a reasoned opinion (IP/12/282) calling upon it to amend its legislation. Since Belgium has not done so, the Commission has decided to refer the matter to the EU Court of Justice.