IB/PVV, box 3, relief to avoid double taxation

Taxpayer (resident of the Netherlands) argued that the Dutch tax on real estate in France is not fully exempted as a result of the new system whereby the fixed return on capital is calculated progressively. The court ruled that the manner in which the Netherlands grants tax relief on (fictitious) income from real estate in France, namely proportionally, is in line with the tax treaty.

The legislator has deliberately not chosen a system with a fixed return per asset so that it cannot be determined how much Dutch tax is due on each asset.

Source in Dutch:
https://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:RBGEL:2021:1668