Knowledge Base


Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.


Which costs are deductible if I buy a house in the Netherlands?


If you own a property in the Netherlands and you use it as your main residence then you may be able to claim some tax deductions. These deductions can be claimed in your tax return. Deductible are costs related to the mortgage.

You can also claim a provisional monthly refund. This has to be done every year again. See also our website if you need help filing the right request.

The costs can be divided in one time only costs and annual costs.

One time only costs

  • Notary costs and 'kadastrale rechten' for the mortgage deed
  • Valuation costs in order to get a mortgage
  • Bank commission called 'afsluitprovisie' in Dutch. This is normally 1% of the mortgage but can vary between 0% and 1.5%
  • Costs related to the National Mortgage Guarantee
  • Fine which has to be paid because of early repayment of the old mortgage (when you decided to change mortgage provider)


Annual costs

  • Interest paid on a mortgage for a maximum of 30 year
  • So called 'erfpacht' payments
  • Interest paid on other loans used for the main residence


Not deductible (costs related to the property itself)

  • costs of the purchase deed
  • notary costs for the delivery of the property
  • the transfer tax
  • repayments of the mortgage
  • costs of maintenance and renovation
  • interest on (part of) the mortgage if it's not used for the property but just to 'consume'

You can find more information about mortgages on our website.
 
Expatax can assist you with filing your tax return.
 
Attached Files
There are no attachments for this article.
Comments (14)
Comment by k bouss on Sat, Dec 3rd, 2011 at 7:08 AM
I believe that you get back 42% for each euro that you pay in interest. If I pay 10k for interest to the bank each year of 6%, then you will get back about 4200 euros it like having interest of r*6%= 3.12%
Comment by arjan enneman on Sat, Dec 3rd, 2011 at 11:03 AM
The actual tax refund indeed depends on the applicable tax bracket. If your income falls in the 42% tax bracket you will indeed get back 42% of the interest you have paid. Additional comments: - if your taxable income falls into a lower bracket due to the deduction of course a lower percentage will be applicable (for that part of the income/deduction). For example if you have an income of
Comment by Jeff on Sun, Mar 1st, 2015 at 10:13 PM
Are the building inspection costs (bouwkundig rapport) deductible?
Comment by Arjan Enneman on Mon, Mar 16th, 2015 at 11:35 PM
The inspection costs are not deductible. This may only be different if the loan provider demands a technical inspection of the property first.
Comment by Val on Thu, Mar 19th, 2015 at 5:04 PM
If I bought the property in March 2015 when can I apply for tax-deductible cost return? Should I wait till 2016?
Comment by Arjan Enneman on Thu, Apr 2nd, 2015 at 1:53 AM
It is possible to request a provisional refund. This way the 2015 refund can be paid in monthly installments during the remaining part of the year. Or you can decide to wait till 2016 and claim the refund in one amount. It is what you prefer. See also www.expatax.nl/provisionalrefund.
Comment by Kristina on Thu, Mar 31st, 2016 at 7:29 PM
Does the main residence means that you need to have permanent residence permit? As I am living in Netherlands just 1 year I cannot have a permanent residence here. If I buy a house, can I still ask for tax deduction? Of course we will use the house as our main residence.
Comment by Arjan Enneman on Tue, Apr 5th, 2016 at 3:50 PM
Relevant is that you use the property as your main residence, your principle residence. Irrelevant is whether you have a permanent or temporary residence permit. Although I can imagine that there could be discussions with the tax authorities if you are only permitted to stay in the Netherlands for a very short period. But in principle the property is seen as your main residence even if you have a residence permit for a year.
Comment by Dmitry Perets on Sat, Apr 30th, 2016 at 7:02 PM
Can you deduct the costs of an interpreter if he/she was demanded by the notary where you signed the mortgage act?
Comment by Arjan Enneman on Mon, May 2nd, 2016 at 1:47 PM
My point of view is that the costs of the intrepreter which are related to the mortgage deed can be deducted, not the costs related to the purchase deed. But there can be discussion about it with the tax authorities. My experience is that it has always been accepted when we deducted the costs (but that can also be due to the relatively low amount).
Comment by Viktor on Fri, Jun 17th, 2016 at 12:49 PM
I am considering to buy a flat in Amsterdam through a mortgage on a property in Germany. However, the amount I can get for it will not cover the full costs of the flat in Amsterdam. Therefore, I am thinking to get only the missing difference from a Dutch bank. Would I be able to deduct both mortgages from tax?
Comment by Arjan Enneman on Tue, Aug 9th, 2016 at 2:22 PM
For 2016 the interest can be deducted on loans to buy or renovate your principle residence up to 102% of the purchase price (excluding expenses). So as long as the total of the loans is not more than 102% of the value the interest on the loans can be deducted. Irrelevant is where the loan is coming from.
Comment by arriba on Wed, Nov 2nd, 2016 at 12:11 AM
The makelaar paid for the purchase is considered in cost of the purchase deed?
Comment by Arjan Enneman on Mon, Nov 7th, 2016 at 2:57 PM
Yes, the costs of a makelaar / real estate agent are considered purchase costs. These costs are not related to financing the property. The makelaar costs are therefor not deductible.
Name
Email
Security Code Security Code
MENU