The idea of a tax specifically targeting second homes is not included in Bart De Wever’s budget proposal. However, another option could be to increase taxes on properties with an unindexed cadastral income exceeding €5,000, whether or not they are considered second homes. At this stage, the proposal remains uncertain, and its effectiveness cannot be assessed based on the publicly available data.
A me linked to cadastral income
As Arizona approaches its second round of budget negotiations, it is seeking to save €10 billion. Among the options being considered is an increase in property taxes. One proposal, presented as a tax on second homes, relied on a 40% increase in the already indexed cadastral income, via property tax.
However, according to a source within the ruling party who consulted the Prime Minister’s memo, it does not include a tax explicitly targeting second homes. This source believes that this presentation diverts attention from other aspects of the debate.
The approach suggested by L’Echo is different: increasing taxes for taxpayers whose cadastral income exceeds €5,000, a threshold calculated without indexation. The criterion would therefore be based on the cadastral value, and not on owning a second home. The mea could apply to a property regardless of its use.
A yield that is difficult to estimate
Centralized data on the number of people affected is not publicly available. Therefore, it is impossible at this stage to quantify the potential revenue from this tax increase based on the available information.
The National Union of Owners and Co-owners (SNPC) criticizes the accumulation of tax burdens. It believes this risks discouraging real estate investment and rentals, potentially impacting the supply of rental housing and rents. The union also points out that the deductibility of mortgage interest has been eliminated for properties other than owner-occupied residences.
A still uncertain lead
The matter is not settled. A source within the MR, the party presented as the most opposed to this approach, indicates that no green light has been given. Budgetary negotiations still need to determine whether this proposal will be maintained or rejected.
Author: Sylvain Anciaux
Source: Politics: all the news – Le Vif (www.levif.be)
Original article: See the original source
