Tax-Deductible Mortgage Costs in the Netherlands
When buying a home in the Netherlands, the costs can add up quickly. The good news? Some of those mortgage-related expenses can be deducted from your income taxes, reducing your tax bill. Here's what you need to know as an expat homeowner.
Which Mortgage Costs Are Tax-Deductible?
Only specific costs related to the acquisition of a mortgage are tax-deductible. These include:
- Mortgage advice and brokerage fees: Costs paid to mortgage advisors or intermediaries.
- Notary fees: Only for the mortgage deed (not the purchase deed).
- Valuation costs: A required property appraisal to obtain the mortgage.
- Costs for the National Mortgage Guarantee (NHG): If applicable.
- Construction interest (bouwrente): Only under certain conditions, if incurred before the mortgage was finalized.
What’s Not Deductible?
Some common costs that are not tax-deductible include:
- Real estate agent fees
- Transfer tax (2% of the property price)
- Notary fees for the purchase deed
- Bank guarantee fees (borgstelling)
Where Do I Claim These Deductions?
These deductions are made when filing your annual Dutch income tax return. You'll include them under “aftrekbare kosten eigen woning” (deductible homeownership expenses). You should also retain receipts and contracts as the Belastingdienst may ask for documentation.
When Are These Costs Deductible?
You can only deduct the costs in the year in which they were paid. So, if you bought your house in 2025, you'll report those costs in your 2025 tax return, submitted in 2026.
Extra Tip: Interest Payments
Monthly mortgage interest payments are also deductible if the mortgage was taken to buy, renovate, or maintain your primary residence — and if it's a linear or annuity mortgage. This significantly reduces taxable income for many homeowners.
Final Thoughts
Tax deductions on mortgage costs are a useful tool for reducing the financial burden of buying a home. Be sure to keep clear records and consult a tax advisor to maximize your benefits and ensure compliance with Dutch tax law.