How does mortgage tax relief work in the Netherlands?

How does mortgage tax relief work in the Netherlands?

Mortgage tax relief (hypotheekrenteaftrek) In the Netherlands, if you have an annuity or linear mortgage, then the interest on your mortgage is tax-deductible and you will receive an annual or monthly tax refund from the Dutch tax office (Belastingdienst). You are only eligible for mortgage tax relief when you are living in your property.

What are the tax deductions for a mortgage?

Tax deductions are certain expenses you incur throughout the tax year that you can subtract from your taxable income, thus lowering the amount of money you have to pay taxes on. And for homeowners who have a mortgage, there are additional deductions they can include.

What is the deductible mortgage interest rate in 2022?

If your income level places you in the highest tax bracket, the tax rate at which you may deduct your mortgage interest will gradually decline. In 2022, the deductible mortgage interest rate is 40 percent, down from 43 percent in 2021. This reduction will be accelerated by 3% annually from 2020, which means that in 2023, it will be 36,93 percent.

How is my mortgage interest deductible in the Netherlands?

If you pay tax at the highest rate, your mortgage interest deduction was reduced to 49% in 2019. The Dutch tax authorities pay back part of the deductible interest. You can get the entire amount back in 1 payment after the end of the financial year once you have completed your tax return for that year.