My name is Michael, and I’m an experienced mortgage advisor specialising in international clients. Let me tell you about the tax benefits you may be eligible for when if you buy a home in the Netherlands. I’ll explain how tax relief on mortgage interest works, what the rules for expats are, and which additional costs are tax deductible.
"As an expat in the Netherlands, you may be eligible for tax benefits"
In the Netherlands, people can usually deduct the interest they pay on their mortgage from their taxable income. So they pay less tax, which often has financial benefits. Expats can also deduct the interest they pay on their mortgage, assuming they meet certain conditions. For instance, you must be liable to pay tax in the Netherlands and the property in question must be your principal residence. In addition, the mortgage must comply with the Dutch tax regulations, such as the obligation to repay the mortgage within 30 years.
You can opt to deduct the mortgage interest from your taxable income every month or once a year. If you choose monthly deductions, you will be repaid part of the interest you pay every month, which may help to lower your monthly expenditure. Annual deduction is a simpler process, as you simple claim this on your annual tax return.
In a word: yes! If you qualify for the 30% tax facility, you can still deduct the mortgage interest on your principal residence in line with the standard rules. So the 30% tax facility does not affect your entitlement to deduct your mortgage interest.
Buying a house in the Netherlands involves additional costs. Some of them can be deducted on your tax return, others cannot. Tax deductible additional costs include:
Non-deductible costs include:
"Not all of the costs are tax deductible, so make sure you know which are. The tax authorities or a tax advisor can help you with this."
You can apply for monthly tax relief on mortgage interest via the Tax Authorities. Log in to the website of the Tax Authorities using your DigiD, and then complete and submit the form entitled ‘Mortgage interest deductions’. The Tax Authorities will check your details and calculate the amount that can be refunded. You can claim annual tax relief on mortgage interest via your annual tax return. If you aren’t sure how to apply for mortgage interest deductions, ask a tax advisor to help you.
As an expat in the Netherlands, you may be eligible for tax benefits when you buy a house. Make sure you know which costs are deductible and how you can apply. Questions? Check the website of the Dutch tax authorities or ask your tax advisor for more information.
Take part in one of our free online information meetings, or arrange an appointment to check out your options. My colleagues and I look forward to helping you fulfil your housing dreams in the Netherlands!
Good luck in your search for a new home!
Kind regards,
Michael Tol, Mortgage Advisor for International Clients
A personal mortgage adviser: from the early stages of your house hunt until the mortgage has been secured.
Dutch mortgage market leader and expert in expats.
The whole process and mortgage application are in English, with English-speaking mortgage advisers.
