Press Release: Direct Taxation: Commission requests Belgium to end discriminatory taxation regarding houses outside Belgium

The European Commission has sent Belgium a formal request to amend its legislation concerning tax relief for owner-occupied and secondary houses. Belgium allows such relief on condition that the houses are located in Belgium. The Commission considers that this condition is contrary to the EC Treaty and the EEA Agreement, as it restricts the free movement of workers, the freedom of establishment and the free movement of capital. The request is in the form of a ‘reasoned opinion’ under Article 226 of the EC Treaty. If Belgium does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the European Court of Justice.