According to the Dutch government agreement, the tax niche for companies investing in real estate in the Netherlands will disappear. What are the consequences for the Belgian CRSs WDP, Aedifica or Xior?
Dutch brick will pay less. Taxation of companies investing in real estate in the Netherlands will become less favorable, according to the government agreement between the parties forming the new Dutch coalition in power.
According to “Het Financieele Dagblad,” which unveiled the information on Monday, investment companies that invest directly in real estate in the Netherlands will have to take the form of companies subject to corporate income tax of 21%.
Currently, institutions investing in Dutch real estate are exempt from tax if they distribute all their profits to shareholders. This tax advantage is based on the idea that these dividends are subject to the withholding tax of 15%. However, as the Dutch Government intends to abolish this withholding tax, the exemption from the benefit of these institutions would no longer be appropriate.
What about the Belgian CRSs exposed to Dutch real estate?
The abolition of this tax advantage will affect not only real estate investment institutions but also pension funds, according to Financieele Dagblad, which states that listed real estate funds such as Wereldhave and Vastned will have to pay a corporate income tax of 21% from 2020 onwards.