Taxing owner-occupied housing: comparing the Netherlands to other European Union countries
AbstractThis paper compares owner-occupied housing tax regimes in the Netherlands and the other countries in the EU-15. The Nether-lands appears to stand apart in two respects. First, in Luxembourg and the Netherlands owner-occupiers have to include an imputed rental income in their taxable income. Second, in the Netherlands, the tax-deductibility of mortgage interest payments is almost unre-stricted. The tax regime of owner-occupied homes increasingly erodes the personal income tax base in the Netherlands, so that higher tax rates are needed to collect a given amount of revenue. However, elimination or reduction of the mortgage interest deduction can only be realized gradually. Due to a lack of data both within the various tax regimes and across time periods, a comprehensive multivariate time-series comparison among the various tax regimes in the EU-15 is not pos-sible. Thus, the statistical analysis is limited to bivariate compari-sons.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5876.
Date of creation: 2007
Date of revision:
Publication status: Published in Public Finance and Management 4.7(2007): pp. 393-421
owner-occupied housing; mortgage interest deduction; imputed rental income;
Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-24 (All new papers)
- NEP-EEC-2007-11-24 (European Economics)
- NEP-PBE-2007-11-24 (Public Economics)
- NEP-PUB-2007-11-24 (Public Finance)
- NEP-URE-2007-11-24 (Urban & Real Estate Economics)
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