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Blackstone owns € 800 million worth of homes in NL, but no tax: VK

Amsterdam poster protesting the sale of public housing. Photo: DutchNews.nl

Volkskrant reported on Saturday that American investor Blackstone, which has built a portfolio of Dutch housing worth € 793 million since 2019, has not paid taxes on Dutch real estate.

According to the newspaper, the company uses various holding companies via Luxembourg, Jersey and the Cayman Islands to “lose” profits and lose money on Dutch ventures, resulting in zero taxes.

Loss in the Netherlands was created by According to Volkskrant, interest on debt that Dutch companies have with companies in Luxembourg.

Blackstone can deduct these interest expense from rental income in the Netherlands. You don’t have to pay taxes on the rent paid by the tenant because there is no profit.

You do not have to pay any unpaid interest.Instead it Added to the loan every year, more discussion, then According to the newspaper, an annual deduction for interest expense.

In 2015, then-Minister of Housing, Stef Blok, called on foreign investors to invest in the housing market, and many have moved in since then.

Blackstone currently owns approximately 1,700 homes in the Netherlands and is valued at € 793 million on its books.

legal

Blackstone told Volkskrant in response that it met Dutch law and that all appropriate taxes were paid.

“The structure we use is consistent with the structure used by institutional investors around the world,” the company said. “Over the last five years, we have invested more than € 4 billion in the growth and improvement of our Dutch real estate portfolio, including offices, logistics, hospitality, housing and retail.”

Aggressive

Jan van de Streak, a tax law professor at Leiden University, told Volkskrant that Blackstone’s approach was an “aggressive tax plan” in “danger zones” and was considered abuse.

He said the tax office is becoming more critical of the private-equity approach and it is ultimately up to the Supreme Court to decide whether it is legal.

Blackstone became a hot topic in the Netherlands last month when it reported that 328 homes in a book in Amsterdam were empty. Real estate owners in the capital need to explain to the city council if the property is empty for more than 6 months, but until then, the company had only reported about 6 cases.

In 2019, UN housing advisors accused private equity firms and Blackstone of exploiting tenants, “causing havoc” in the community and fostering a global housing crisis.

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Blackstone owns € 800 million worth of homes in NL, but no tax: VK

Source link Blackstone owns € 800 million worth of homes in NL, but no tax: VK

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