Finance

Home buyer Blackstone circumvents tax in the Netherlands due to trick

According to the newspaper, the homes that Blackstone owns in Amsterdam, Rotterdam and Utrecht are housed in separate companies, which in turn are part of companies in Luxembourg, the Cayman Islands and Jersey.

The profits fall into companies in those countries, where taxes are low. On the other hand, companies in the Netherlands are making a loss on paper, due to interest charges on loans they have with Blackstone companies in Luxembourg. As a result, they have little or no tax to pay in our country, according to de Volkskrant.

That saves the tax authorities millions in corporate tax, according to the newspaper. In addition, the construction would allow Blackstone to deposit more money for Dutch homes than its competitors.

Controversial

Blackstone is controversial, in the Netherlands and beyond. Last month, Blackstone reported that it had about 330 homes in Amsterdam that were empty, said Alderman Rutger Groot Wassink of Wonen. This caused unrest, because many people find it difficult to find affordable housing.

Home purchases by Blackstone have also sparked protests in cities such as Barcelona and Copenhagen, alleging it mistreats tenants and seeks only to raise rents, the Financieele Dagblad reported last year.

Blackstone is also known in the Netherlands because it took over bank NIBC.

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