Belgians with a second residence abroad will be assigned a cadastral income (KI) for it this year. This new regulation is creating new inequalities, explains Carl Vorsselmans, real estate agent for Spain.
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'New inequalities have been created'
Belgians with a second residence abroad will be assigned a cadastral income (KI) for it this year. This new regulation throws up new inequalities, explains Carl Vorsselmans, real estate agent for real estate in Spain.
1. What is it about?
"Europe has repeatedly taken Belgium to task for taxing second residences abroad differently than those in the country. This discrimination was contrary to the free movement of goods and capital. That's why our country granted a KI to all those foreign second stays. That is taken into account to calculate everyone's tax rate."
2. What is the problem?
"The government has processed 170,000 files in a short period of time and it seems that in doing so it has focused mainly on the purchase price and much less on other criteria such as location or rental potential. That makes some similar lodgings have very different KI, for example because one was purchased much earlier and therefore cheaper than the other. The intention was to eliminate a discrimination, but in doing so new inequalities have been created."
3. What can stakeholders do about it?
"You have two months after the award of that KI to file an objection. Those who choose to do so should add a detailed justification with as many concrete examples as possible that can substantiate why that KI was misjudged."
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