This document is an excerpt from the EUR-Lex website
Document 62017CJ0110
Judgment of the Court (Sixth Chamber) of 12 April 2018.
European Commission v Kingdom of Belgium.
Failure of a Member State to fulfil obligations — Free movement of capital — Article 63 TFEU — Article 40 of the EEA Agreement — Tax on the income of Belgian residents — Calculation of income from immovable property — Application of two different calculation methods depending on the place in which the immovable property is situated — Calculation on the basis of the cadastral value for immovable property located in Belgium — Calculation based on the actual rental value for immovable property located in another Member State of the European Union or the European Economic Area (EEA) — Difference in treatment — Restriction on the free movement of capital.
Case C-110/17.
Judgment of the Court (Sixth Chamber) of 12 April 2018.
European Commission v Kingdom of Belgium.
Failure of a Member State to fulfil obligations — Free movement of capital — Article 63 TFEU — Article 40 of the EEA Agreement — Tax on the income of Belgian residents — Calculation of income from immovable property — Application of two different calculation methods depending on the place in which the immovable property is situated — Calculation on the basis of the cadastral value for immovable property located in Belgium — Calculation based on the actual rental value for immovable property located in another Member State of the European Union or the European Economic Area (EEA) — Difference in treatment — Restriction on the free movement of capital.
Case C-110/17.
Case C‑110/17
European Commission
v
Kingdom of Belgium
(Failure of a Member State to fulfil obligations — Free movement of capital — Article 63 TFEU — Article 40 of the EEA Agreement — Tax on the income of Belgian residents — Calculation of income from immovable property — Application of two different calculation methods depending on the place in which the immovable property is situated — Calculation on the basis of the cadastral value for immovable property located in Belgium — Calculation based on the actual rental value for immovable property located in another Member State of the European Union or the European Economic Area (EEA) — Difference in treatment — Restriction on the free movement of capital)
Summary — Judgment of the Court (Sixth Chamber), 12 April 2018
Free movement of capital and liberalisation of payments — Restrictions — Tax legislation — Income tax — Calculation of income from immovable property — National legislation providing for two different calculation methods depending on the place in which the immovable property is situated — Calculation on the basis of the cadastral value for immovable property located in the Member State concerned — Calculation based on the actual rental value for immovable property located in another Member State — Failure to fulfil obligations
(Art. 63 TFEU; EEA Agreement, Art. 40)
By retaining provisions under which, in respect of the estimation of income relating to unrented immovable property or immovable property rented either to natural persons who do not use them for professional purposes or to legal persons which make such property available to natural persons for private purposes, the tax base is calculated on the basis of the cadastral value so far as immovable property on national territory is concerned, and on the actual rental value so far as immovable property located abroad is concerned, a Member State fails to fulfil its obligations under Article 63 TFEU and Article 40 of the Agreement on the European Economic Area.
(see para. 65, operative part)