An annual tax return is a mandatory financial document that individuals and businesses submit to tax authorities, detailing their income, expenses, and other relevant financial information for a specific tax year.

It allows taxpayers to calculate their tax liability and determine whether they owe additional taxes or are eligible for refunds.

March is already ending, and it's time to file your taxes to deduct the mortgage interest or other tax-deductible fees for 2023. Have you bought a property? Then, you are obliged to file your taxes.

Which fees are tax deductible in the Netherlands:

Appraisal fees
Translation costs
Mortgage interest rate
Mortgage brokerage and advisory fees
Notary fees: mortgage-related fees
National Mortgage Guarantee (NHG) fee

You might also deduct the following items from your taxable income if you bought new construction.

Construction interest that you paid between signing the purchase and building contract and signing the mortgage deed;
Costs for the new-build deposit (the difference between the interest you spend and receive).

Which rates are not tax deductible?

It's essential to be aware of expenses that cannot be deducted when filing your tax return and those that can be deducted. For example:

Real estate agent fees.
Transfer or sale tax.
Notary fees and cadastral fees for the deed of sale/deed of delivery.
Costs of maintenance and renovation.
Interest and costs that are not on the repayment of the mortgage.
Bank guarantee fees.

Tax deduction on higher incomes

If your combined income from work and home exceeds €75,518 in 2024, you will be eligible for a reduced deduction for the interest and expenses of your owner-occupied property. This is due to the "rate adjustment" implemented in the highest tax bracket.

It's important to note that the rate adjustment doesn't just affect mortgage interest; it also applies to all other deductible expenses related to your owner-occupied home. This includes regular payments for the ground lease and fees for notary and consultancy services when taking out a mortgage.

When filing your tax return, the deduction and correction for your taxes are automatically calculated for you, eliminating the need for manual calculations on your part.

Are you looking for mortgage advice?

Schedule a complimentary introductory call with our mortgage specialists. We specialize in mortgages for expats and are dedicated to navigating you through the home-buying process.