Tax deductibles for expat homeowners

We are in the height of income tax return season. Are you a homeowner in The Netherlands? Do you have a mortgage? Then there are several fees that can be deducted from your taxable income.

We’ve compiled a comprehensive list of deductibles that all (expat) homeowners should be sure to add when filing their income tax returns.

Expat specific tax deductibles

If you are an expat working in The Netherlands, you may be eligible for the 30% ruling. This can not only help you get a mortgage, but it will also affect the amount of income tax you have to pay. Your mortgage advisor can help you find out if you are eligible for the 30% ruling and what the positive impact it will have on your taxes.

Purchasing (or refinancing) tax deductibles

Mortgage advice and financing fees

A mortgage advisor is a great asset to your homebuying experience to make sure that you have all the necessary documentation and information you need to get a mortgage. These fees can be anywhere from €2500 or more.

Bouwdepot

If you have arranged a loan to cover the costs of a renovation before your move, the financing costs and interest are also included your tax deductibles.

Appraisal report fees

To secure a mortgage, mortgage lenders require you to provide an appraisal report (or taxatierapport) from an official appraiser. This is usually a qualified, third-party real estate agent and usually costs around €600.

Fees for the notary and cadastral rights of the mortgage deed:

You will need a notary to legalise your mortgage deed and register you in the Dutch cadastral registry. Notarial fees can be upwards of €1000.

National Mortgage Guarantee (NHG) application fees

For properties that are €355,000 or less, you may be eligible for the NHG. The application costs 0,6% of the total value of the mortgage.

Refinancing penalty fees

Penalties for early repayment or cancellation of a mortgage for refinancing.

Mortgage interest

Any interest payments in the fiscal year on linear or annuity mortgages are included (and deductible) here. If you have a tax partner and each of you own a home, you can only deduct the mortgage interest from one of your properties and it must be owner-occupied.

Leasehold fees

Leasehold is very common in Amsterdam and you will likely pay a monthly or yearly fee.

Bottom line

It’s also important to note that there are some expenses associated with homebuying that are not deductible. These are, namely, real estate agent fees, property transfer tax, and ground lease buyout fees.

Do you want some advice about your tax deductibles? Or are you ready to buy a home in 2022? Book a free consultation with Arjen, today!