When you buy a home in the Netherlands, various costs are associated with the purchase and ongoing ownership. Understanding which of these costs are deductible can help you optimize your tax situation.

Mortgage Interest

• The interest paid on your mortgage is generally deductible from your taxable income. This is one of the most significant tax advantages of homeownership in the Netherlands.

Mortgage Arrangement Fees

• Costs associated with setting up your mortgage, including any arrangement fees charged by your lender, are deductible.

Notary Fees

• Fees paid to the notary for the transfer of ownership and the mortgage deed are also deductible.

Valuation Costs

• If you had a valuation done for your mortgage application, these costs are deductible.

Property Tax (Onroerendezaakbelasting - OZB)

• The annual municipal property tax paid on your home is deductible. This includes both the residential and any business portion if applicable.

Energy Efficiency Improvement Costs

• Expenses related to making your home more energy-efficient may be eligible for deductions or subsidies, depending on government policies.

Conclusion

Understanding the deductible costs associated with homeownership in the Netherlands can significantly impact your tax situation. By keeping accurate records of these expenses, you can maximize your tax benefits. If you have questions or need personalized assistance, consider reaching out to a tax advisor or our team at Cash Vision for guidance!