Notional interest rate for Assessment Year 2016 is 1,630%
The notional interest rate is determined by reference to the average interest rate for 10-year linear government bonds of the months July until September (reference indexes J), as published by the Rentenfonds/Fonds des rentes (Article 205quater §2 Income Tax Code). This average rate is 1,562%.
However, the applicable rate can never deviate more than 1% of the rate applicable during the preceding year (Article 205quater §3 Income Tax Code). The law authorises the King to disregard the above limitation and determine another rate but this rate can never be lower than the rate of the preceding year.
The notional interest rate for assessment year 2015 is equal to 2,630%.
Hence, subject to any changes by the legislator, the notional interest rate for assessment year 2016 will be 1,630%.