Buying a house? These costs are deductible
Buying a house? These costs are deductible
When you buy a house you can deduct a number of costs from your income tax. You then pay less tax, or you get more back. We have listed for you which items you can enter and what you should pay attention to.
Which costs can (and cannot) be deducted from income tax?
From a building inspection to notary costs, you spend a lot of money when purchasing a house. Fortunately, you can deduct part of this from your tax return.
In short, all costs for the mortgage application are deductible, while costs for the purchase of the home itself are not.
These costs are deductible:
– Costs for the mortgage advisor. Or, if you arrange the mortgage yourself, the closing costs charged by the financier.
– Valuation costs
– Costs for a structural inspection, but only if this is required by the NHG or from the bank
– Costs for NHG application
– Costs for refinancing, extension or penalty interest
– Notary costs for signing the mortgage deed
For a new-build home, you can also deduct these costs:
– The construction interest from the moment you signed the provisional purchase contract
– Costs for a construction account
As mentioned, you are not allowed to claim all costs as deductible items.
These costs are not deductible:
– Costs for a purchasing agent
– Costs for a structural inspection if this is not required
– Transfer tax
– Costs for renovation, refurbishment and furnishing
– Costs for moving, temporary accommodation or storage
– Notary costs for signing the deed of delivery
– Costs for an energy label
– And for new-build homes, the construction interest before signing the provisional purchase contract
What about mortgage interest deduction and leasehold?
Most costs that you can deduct when purchasing a home are one-off. There are two exceptions: mortgage interest and leasehold.
With an annuity or linear mortgage you can deduct the mortgage interest from your income tax. You do not have to wait for the annual tax return for this. With the provisional refund you will receive the amount back every month. You are entitled to mortgage interest deduction for a maximum of 30 years.
If your home is located on someone else's land, it is subject to a leasehold. If you pay this monthly or annually, these costs are deductible on your tax return. Please note: if you buy out the leasehold in one go, you are not allowed to deduct this.
Do you have questions about all the costs involved in purchasing a home?
Our real estate agents are happy to give you advice and insight into the costs you will face when you buy a house. Please feel free to contact us for a no-obligation consultation and we will discuss everything with you.
