Dutch mortgage interest relief can be included in your annual tax return or, for an expected refund during the year, in a provisional assessment. I can handle either for you. First, I check how much interest actually qualifies. Your lender’s annual statement is a starting point, but it does not explain how you used the borrowing or what happened when you sold a previous home.
A mortgage does not make every part of the loan deductible
For a new qualifying home loan from 2013 onwards, the general rule is that the money must fund the purchase, improvement or maintenance of your main home. The agreement must require repayment within 30 years at least as quickly as an annuity schedule, and you must keep to it. Straight-line repayment also qualifies. An annuity schedule keeps your total payment level while the interest rate stays unchanged.
A mortgage can contain several loan parts. Borrowing extra for a renovation is different from borrowing extra for a car. Having both secured against your home does not make the car-related interest deductible. Repaying the loan principal is not deductible either.
If you had a qualifying home loan on 31 December 2012, transitional rules may preserve relief on an interest-only part. Refinancing does not restart the deduction period. I therefore review the earlier borrowing, the remaining period and any increases. The latest mortgage agreement alone may not tell the full story.
Get in touch. I can help you claim mortgage interest relief and prepare your Dutch tax return.
Keeping sale proceeds can restrict interest relief
Suppose selling your previous home leaves €80,000 after selling costs and repayment of the qualifying home loan. You immediately buy another home for €400,000, borrow the full purchase price and keep the €80,000 in savings. Ignoring additional costs and other complications, the Dutch home equity reinvestment rules limit the qualifying loan to €320,000.
At 4% interest for a full year, you pay €16,000 in interest, but only €12,800 qualifies for deduction in this example. The remaining €3,200 carries no mortgage interest relief. The restriction arises from what happened to the equity, regardless of how the lender describes the loan.
The amount tracked for these rules is called the eigenwoningreserve, or home equity reserve, and generally expires after three years. Buying with a partner, different ownership histories or a separation needs closer attention. I check how each person’s previous sale and borrowing affect the new home. A provisional refund based on all the interest reported by the bank could otherwise overstate the relief available.
A deduction is not the amount paid into your bank account
Even fully deductible interest is not refunded in full. It reduces taxable income. Your home also creates a taxable addition called the eigenwoningforfait, based on its official WOZ value.
For a home with a WOZ value of €400,000, occupied as your main home throughout 2026, that addition is €1,400. With €12,000 of deductible interest and no other home-related tax items, the net deduction is €10,600. Your box 1 taxable income falls by €10,600; you do not receive a €10,600 refund.
The final benefit depends on your income and tax credits. For high earners, the deduction rate for mortgage interest and related costs is capped at 37.56% in 2026. If you have a fiscal partner, I also review how the home-related amount is allocated between your returns. I do not automatically assign every deduction to the higher earner.
The purchase year should not become next year’s template
Mortgage advice, the mortgage deed, a valuation required for the loan and National Mortgage Guarantee fees can qualify for deduction insofar as they relate to a qualifying home loan. Transfer tax, the buying agent and the property transfer deed do not. One notary’s statement can contain both deductible and non-deductible costs. I separate them and check which year the deduction belongs in.
These one-off costs can substantially increase the refund in the purchase year. Carrying them into the following year’s estimate can make the provisional refund too high. Extra repayments or a lower mortgage interest rate can also mean that the estimate needs reducing.
If you want to receive an expected refund during the year, I can apply for or update your provisional assessment. I base it on your expected annual income and eligible deductions. It remains an advance that is taken into account when your final tax is calculated.
Let me deal with your home’s tax position
You do not have to untangle the rules for each loan part yourself. Through my Dutch income tax return service, I review the financing, home-related costs and any allocation with your partner. In your first message, mention whether you bought, sold, renovated or refinanced. I explain which documents I need, agree the fees in advance and prepare the return for your approval before filing it.