Real estate to be excluded from the fiscal investment institution (FBI) regime

26 September 2022

As of 1 January 2024, the government plans to introduce a corporate income tax measure under which fiscal investment institutions (FBIs) will no longer be allowed to invest directly in real estate.

Portrait of Daniël van Meijgaarden
Written by:
Daniël van Meijgaarden Senior tax advisor
Real estate outside the FBI regime

At present, a fiscal investment institution’s profit is taxed at a corporate income tax rate of 0%. This includes the results realised on real estate. If the shareholders/participants (partly) consist of foreign investors, situations may arise where the right to levy tax on Dutch real estate cannot be (fully) implemented. The real estate measure ensures that the profits earned from real estate can be subjected to corporate income tax in all cases.

The real estate measure will be fleshed out in more detail next year and included in the 2024 Tax Plan package. It consists broadly of the following measures:

  1. An investment institution may no longer invest in real estate, regardless of the location of the real estate, in order to qualify for the Dutch FBI regime.
  2. The financing requirement will be adjusted in that the current requirement that loan financing cannot exceed 60% of the book value of the real estate will lapse. As a result, loan finance for investments will be limited to no more than 20% of the book value of those investments.
  3. The extensions to the concept of investment of assets for application of the FBI regime are eliminated insofar as they relate to investment in real estate.

Do you require more information?

Would you like more detailed information about the real estate measure? Our tax advisors would be happy to assist you. Please contact Daniël van Meijgaarden, senior tax advisor, on telephone number +31 165531348 or send Daniël an e-mail.


Would you like more information? Our specialist will gladly assist you.

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