The European Commission has referred Belgium to the European Court of Justice (ECJ) on the grounds that its property tax rules are contrary to EU law. Belgium has separate tax rules for property located in Belgium as compared to property located in another EU member state. The income earned by a Belgium resident from certain property located abroad is based on a different method of assessment leading to a higher amount than the income earned from similar property in Belgium.

In March 2012 the Commission asked Belgium to change its property tax legislation. No change has been made in the legislation since that time and the matter will therefore be brought before the ECJ.

The European Commission considers that the Belgian property tax rules favor investment in certain properties in Belgium and effectively penalize taxpayers who invest in properties of the same type in another EU or European Economic Area (EEA) member state. In the view of the European Commission this constitutes an infringement of the free movement of capital.