Table 1.

Fiscal variants for home ownership according to the CSED

Current policy	Future policy
	Own home as an investment asset (variant 1)	Own home as an investment asset, with a €200,000 tax exemption cap (variant 2)	Own home as consumer good (variant 3)	Own home removed from tax system (variant 4)
Relatively low flat-rate tax liability (max 0.55 %) on capital invested in own home and taxed at a marginal rate (15.55–52 %); placed in box 1 (income)	Standard flat-rate tax liability (4 %) of return on capital invested in own home, which is taxed at a fixed rate (30 %); placed in box 3 (capital)	As variant 1, but with a maximum tax-free allowance of €200,000; home owner receives tax refund in case of a negative tax	For home owners, no tax liability for their imputed rent
Deduction of actually paid interest on mortgage debt which is taxed at a marginal rate (15.55–52 %) and placed in box 1 (income)	Standard flat-rate (4 % of mortgage debt), taxed at a fixed rate (30 %); placed in box 3 (capital)			No tax deduction for mortgage interest or debt

Source: SER-CSED 2010: 34