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Taxing owner-occupied housing: comparing the Netherlands to other European Union countries

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  • van der Hoek, M. Peter
  • Radloff, Sarah. E.

Abstract

This 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.

Suggested Citation

  • van der Hoek, M. Peter & Radloff, Sarah. E., 2007. "Taxing owner-occupied housing: comparing the Netherlands to other European Union countries," MPRA Paper 5876, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5876
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    File URL: https://mpra.ub.uni-muenchen.de/5876/1/MPRA_paper_5876.pdf
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    References listed on IDEAS

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    Cited by:

    1. Suntum, Ulrich van, 2009. "Housing, taxation and retirement provision," Journal of Housing Economics, Elsevier, vol. 18(3), pages 249-255, September.
    2. Ulrich van Suntum, "undated". "Optimal Consumption and Taxation of Housing - A Life Cycle Approach," Working Papers 200125, Institute of Spatial and Housing Economics, Munster Universitary.
    3. van Suntum, Ulrich, 2008. "Optimal consumption and taxation of housing: A life cycle approach," CAWM Discussion Papers 3, University of Münster, Münster Center for Economic Policy (MEP).
    4. Nassios, J. & Giesecke, J.A. & Dixon, P.B. & Rimmer, M.T., 2019. "Modelling the allocative efficiency of landowner taxation," Economic Modelling, Elsevier, vol. 81(C), pages 111-123.

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    More about this item

    Keywords

    owner-occupied housing; mortgage interest deduction; imputed rental income;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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