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

M van der Hoek and Sarah. E. Radloff

MPRA Paper from University Library of Munich, Germany

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.

Keywords: owner-occupied housing; mortgage interest deduction; imputed rental income (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-eec, nep-pbe, nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Public Finance and Management 4.7(2007): pp. 393-421

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:5876

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