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.


How is the provisional refund calculated when partners bought a house together?

Question:
Good morning, my question is about the refund you can get from the tax authorities in the monthly payment of the mortgage.
My boyfriend bought a house with a mortgage and he is receiving back around 30% of the monthly payment (he doesn't have the 30% rule).
The mortgage is not on my name, but we are planing to include me in the mortgage so we would double the amount per month, his part and my part.

I am going to start working in The Netherlands. My question is what will happen with the monthly refund of the mortgage? Are we going to have the same refund but half each? He will continue with the same refund and I will not get anything? Are we going to have a higher refund, what he was receiving plus something else from my side?
 
Thank you very much for your help.
 
Answer:

The mortgage interest will be deducted from the income. The benefit depends on the applicable income which determines the applicable tax rate (around 30%, 42% or 52%). The highest income is relevant in most cases. The deduction will not be doubled if two partners claim a deduction, instead the deduction is divided over the two partners (in case of fiscal partnership). But it may also be more beneficial to divide the entire deduction to one partner. You can both decide what is most beneficial to you.

So if your income will fall in the 52% tax bracket and your partners in the 42% tax bracket it should be beneficial to divide more of the deduction to you, otherwise it may not be necessary to change or just to split the deduction 50/50. It is difficult to give a precise answer since it really depends on the actual income, other deductions etc. But in general it is more interesting to deduct the interest in the tax return of the partner with the highest income. You can then still split the refund when you actually receive it if you want.

 
 
Attached Files
There are no attachments for this article.
Comments
There are no comments for this article. Be the first to post a comment.
Name
Email
Security Code Security Code
Related Articles RSS Feed
How is the provisional refund paid out to me?
Viewed 14191 times since Mon, Feb 18, 2013
What is a non-repayment mortgage?
Viewed 2468 times since Thu, Dec 8, 2011
New mortgage rules in 2014 - tax and legal consequences
Viewed 10241 times since Thu, Jan 9, 2014
Euro mortgage
Viewed 1441 times since Fri, Aug 30, 2013
Will I have to renew the provisional refund I receive every year?
Viewed 6960 times since Sun, Nov 27, 2011
I am receiving a provisional refund every month. Can I change it?
Viewed 17948 times since Sun, Nov 27, 2011
Request for a "voorlopige teruggaaf" filed by mistake
Viewed 4974 times since Thu, Mar 14, 2013
I have left the Netherlands and rented out my Dutch house. Now the mortgage provider is creating problems.
Viewed 15060 times since Sat, Nov 26, 2011
Will I receive a provisional refund on my mortgage interest if I am self employed?
Viewed 11998 times since Tue, Apr 16, 2013
Tax authorities use provisional refund to compensate other tax claims
Viewed 13031 times since Tue, Nov 29, 2011
MenuMENU