Realestate

[jstar]

There is a big difference between ‘vermogenswinstbelasting’ and ‘vermogenrendementsbelasting’. The latter is just a tax on the capital or real estate that you posses. A fictive forfait. The former (which is in fact capital gains) would be implemented in 2027 in the NL but with the new ultra right government that might not happen. The situation in Belgium is opposite from the Netherlands btw.

Coming back to the ‘prijsbewimpeling’; that’s more or less a Belgian invention to pay less tax on buying a house. Or you make sure there’s a different contract for the curtains and other fixtures or you blandly lie to the notary and pay a part of the money under the table. All to make sure the % to pay to the state and the notary will be a smaller amount. The same happens here of course, sometimes they even take the OJP even if it’s lower than the sales price.

But I wasn’t talking about all that. I mentioned a very legal way to deduct all sales tax that is related to the house. Certain countries (US, NL, …) offer that if you set up a ‘VAT company’. Rather interesting.

 

[Samoerai]

The latter is just a tax on the capital that you posses.

And you get first a large deductable on the capital. Btw. it's the tax rate × the fictional yield.