BELGIUM Law and Practice Contributed by: Pieter Puelinckx, Yves Moreau, Donald Krols and Astrid Laga, Linklaters
Acquisition by Foreign Investors, Through a Non-Belgian Entity Regarding acquisitions made through a non- Belgian entity, foreign companies are allowed to acquire ownership or real rights over Belgian properties. Here, the relevant double-tax treaties come into play, with the general principle being that rental income and capital gains are taxable in Belgium in the non-resident income tax at the ordinary corporate income tax rate. 8.5 Tax Benefits Belgian law does not provide specific tax ben - efits granted with the ownership of real estate in Belgium. Usually, the ownership of real estate properties can be subject to amortisation, which will be tax deductible. There is, however, no amortisation on land.
from Belgian source dividends or Belgian real estate income. In the absence of a Belgian domestic withhold - ing tax exemption, one would need to rely on a reduction or exemption based on a double tax treaty (if any). Belgian withholding tax on interest on shareholder loans Interest payments are in principle subject to a 30% Belgian withholding tax, unless an exemp - tion or reduction applies (based on domestic law or a double tax treaty). In case of interest paid by an ordinary SPV, a Belgian domestic interest withholding tax may be available for, eg, qualifying participations (at least 25% in the capital) subject to conditions. In case of interest paid by SREIF/B-REIT, in prin - ciple no Belgian domestic interest withholding tax would be available. In the absence of a Belgian domestic withhold - ing tax exemption, one would need to rely on a reduction or exemption based on a double tax treaty (if any).
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