These are the costs you incur when arranging your mortgage. This includes notary fees for the mortgage deed and advisory fees. You can deduct these costs from your income once.
The purchase costs of your home are not tax deductible. These include, for example, estate agent fees and transfer tax. If you have a qualifying home acquisition debt and you want to pay these costs from your mortgage, then you may deduct the mortgage interest on that part.
"},"textLinks":[{"url":"https://www.belastingdienst.nl/wps/wcm/connect/nl/koopwoning/content/eigen-woning-aftrekbare-kosten","text":"Overview of deductible costs (Dutch Tax and Customs Administration)"}]},{"componentType":"sectionTitle","title":"3. Provisional mortgage interest refund"},{"componentType":"paragraph","richBody":{"value":"Your income tax is calculated definitively after each calendar year. The deductible mortgage costs are included in that calculation. This means that you will only receive a refund after the calendar year for any tax you have overpaid. You can also apply for the provisional refund from the Dutch Tax and Customs Administration.
Apply for a provisional assessment
If you meet the conditions, you can receive part of the overpaid tax back every month. You can arrange this online using the Provisional Assessment form.
Since the introduction of the Income Tax Act 2001, you can claim mortgage interest tax relief for a maximum of 30 years on the loan for your first home. If you took out a loan before 2001 to finance your first home, you are entitled to mortgage interest relief until 1 January 2031.
"},"textLinks":[{"url":"/particulier/hypotheek/actuele-hypotheekrente/hypotheekrenteaftrek-stopt-2031","text":"Will the mortgage interest relief end in 2031?"}]},{"componentType":"sectionTitle","title":"5. Capital gains scheme (bijleenregeling)"},{"componentType":"paragraph","richBody":{"value":"If you sell your house and buy another within 3 years, the capital gains scheme plays an important role. If you sell your old home at a profit, this creates equity (overwaarde). This equity affects the amount of mortgage interest you may deduct on your new home.
Example of equity:
Suppose you have a mortgage debt of €150,000 and you sell your home for €200,000. You then have €50,000 in equity. In that case, the capital gains scheme applies. You may deduct less mortgage interest when buying a new home. For example, if you buy a new home for €225,000, you may deduct mortgage interest on a maximum of €175,000 (€225,000 minus €50,000).