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 (31)
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.
Comment by Serban on Fri, Dec 23rd, 2016 at 4:52 PM
I paid 175 EUR for handling cost of my Life Insurance (required for the mortgage) to my bank. (It‘s one time cost not the monthly premium) Is this amount tax deductible?
Comment by Arjan Enneman on Fri, Dec 30th, 2016 at 3:21 PM
If the life insurance is required by your bank and is linked to your mortgage then the costs for arranging the insurance are deductible. The premium you pay every month for the insurance is not deductible.
Comment by Serban on Fri, Dec 30th, 2016 at 3:33 PM
Yes it was requested by the bank. Under what item should I declare next year? Or what should I write for explanation (in dutch)? Thanks a lot
Comment by Arjan Enneman on Fri, Dec 30th, 2016 at 4:02 PM
These are costs of arranging finance, in Dutch: "financieringskosten". That is the category. In the specification you can mention that it was for arranging the "overlijdensrisicoverzekering", an insurance which pays out a sum of money in case of early death.
Comment by Serban on Fri, Dec 30th, 2016 at 4:05 PM
Thanks a lot. I guess the mortgage part of the interpreter can be declared under same category. What is the dutch explanation for that?
Comment by Arjan Enneman on Mon, Jan 2nd, 2017 at 2:08 PM
There is discussion about the interpreter fees. I find it defendable to deduct 50% of the interpreter fees (the costs related to the mortgage deed, not the purchase deed). Without guarantee that you understand the mortgage deed the notary is not allowed to sign the deed and make the mortgage possible. In Dutch the explanation would be something like: Kosten vertalen hypotheekakte.
Comment by Serhan on Fri, Jan 6th, 2017 at 11:23 AM
As far as I know we can only claim tax deduction for the interest related to purchasing price of the house. Most cases mortgage is 102% of the purchase price. So at the end of the year, how can we differentiate the interest for purchase part and the interest for 2% additional percent for that specific year?
Comment by Giorgio on Sat, Jan 7th, 2017 at 4:27 PM
Is it correct that on NEW homes bought by the builder the VAT of 21% is applied? How should this to be treated when the house is bought by a company in the following 3 cases: 1) A EU company (UK Ltd) 2) An EU company (UK Ltd) with fiscal ID in The Netherlands 3) A Dutch company I assume that the house is used for the company in one of these three ways: - To be given as a benefit to an employee resident in Netherlands with a payroll there - To be rented by the UK Ltd - To be used (completely or partially) as an office Thanks for replying
Comment by Arjan Enneman on Tue, Jan 10th, 2017 at 9:53 AM
Deductible is the interest related to the purchase of the house. This includes the purchasing price but also the related costs like transfer tax ("overdrachtsbelasting"), notary costs for the purchase deed and costs of the real estate agent. So you don‘t have to differentiate the interest for the purchase part. Only interest which sees on costs of arranging finance is not deductible. Reason for this is that the costs of arranging finance are already deductible themselves. Of course all up to 102% (for the year 2016) of the marketvalue of the house. In 2017 this is 101% and in 2018 100%.
Comment by Arjan Enneman on Mon, Jan 23rd, 2017 at 2:49 PM
@Giorgio. Your questions can‘t be answered in the comments here unfortunately. It requires an extensive reply. VAT is too complicated for a quick reply and also requires the help of an advisor who is specialized in VAT.
Comment by Enrique on Fri, Mar 31st, 2017 at 7:06 PM
Hello, due to my work I am exempted from tax on my income in NL but my (soon to be) wife is not. We are thinking of buying a house and getting a mortgage for it. Is there a minimum income for her to have to be entitled to deduction? Does my income affect her income tax or tax deductions?
Comment by Arjan Enneman on Tue, Apr 4th, 2017 at 1:45 PM
The deduction will reduce the taxable income. The higher the taxable income the bigger the benefit will be due to the applicable tax rate. Also tax credits will affect the benefit. Tax credits are granted after the income is reduced with the tax deductions. If the tax to be paid is lower than the tax credits then you will lose part of the tax credit. Roughly said, an income of € 10,000 in a full tax year will not lead to tax due to the tax credits. Be aware that the credits vary depending on personal situation. So it is "roughly". Above this amount the tax deduction will become a benefit. The amount of the benefit depends on the income and the amount of the deduction.
Comment by rory o connor on Mon, Apr 17th, 2017 at 2:59 PM
I would greatly appreciate it, if someone could provide answers to the following questions: (1) Are Hypotheek advisie (Advisiekosten & Kosten Hypotheelakte) costs tax refundable? (2). Is the costs for a translator tax refundable? (related to the mortgage and purchase dead). (3). Are there any important points to keep in mind when buying a new build house? (4). Is it possible to claim tax return on Interest paid for the mortgage? (5). If you add value to the house for instance ( Extension, kitchen etc during the building phase) are these costs tax refundable? (6). If I were to install solar panels in my house, are these costs tax refundable?
Comment by vishmai on Mon, May 1st, 2017 at 11:34 PM
The one time costs related to arranging a mortgage are these fully deductible? For example if the Advise and handling costs in arranging the mortgage is 1000 euro, do we get back the whole amount or part of it?
Comment by Arjan Enneman on Tue, Jun 13th, 2017 at 1:30 PM
Costs related to financing the house may be deductible. Costs related to the purchase or the property itself are not deductible. So deductible are the hypotheek advise, the hypotheekakte and the interest. Translator fee is not really seen as an expense related to the mortgage but in my experience if you deduct the costs of the translator with respect to the mortgage deed, the tax authorities accept that. Costs of adding value or solar panels to your house are not deductible. The added value will be received tax free when you sell the house. The one time costs are deductible up to 1.5% of the mortgage with a maximum of € 3,630 per partner. The difference has to be spread out over the term of the mortgage. A deduction will lead to a tax refund which depends on the applicable tax percentage. So you will not get everything back.
Comment by Saro on Thu, Sep 21st, 2017 at 8:58 PM
Hello, I am living and working at the moment in the Netherlands, but I am planning to buy an house in Belgium and move there. My loan will be probably with a Belgian bank but my income will continue to be from a Dutch company. Could I request any tax deduction?
Comment by Arjan Enneman on Tue, Sep 26th, 2017 at 12:21 PM
A tax deduction is possible if you continue to pay tax in the Netherlands on income (physically) earned here while you are living in another EU country. There are some requirements. See www.expatax.nl/news/qualified-non-resident-taxpayer.
Name
Email
Security Code Security Code
MenuMENU