EU critical of mortgage interest relief

4th June 2007, Comments 0 comments

4 June 2007, AMSTERDAM – The European Commission calls the generous mortgage interest relief scheme in the Netherlands "perverse" because it reportedly does not benefit homeowners at all in the end.

4 June 2007

AMSTERDAM – The European Commission calls the generous mortgage interest relief scheme in the Netherlands "perverse" because it reportedly does not benefit homeowners at all in the end.

Brussels says that the tax incentive only increases the demand on the housing market, resulting in significantly higher house prices, which is not the case in other countries, or at least not to the same extent.

This has emerged from a confidential fiscal study by the Commission that State secretary for Finance De Jager and his European colleagues will discuss in Luxembourg on Tuesday.

In the report Brussels calls on the Netherlands and other members to increase what it regards as excessively low property taxes and use the revenue to lower income tax. This would be a more responsible fiscal response to the ageing of the population and globalisation.

This is not the first time that Brussels has lashed out at the mortgage interest relief scheme in the Netherlands.

[Copyright Expatica News 2007]

Subject: Dutch news

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