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Housing

Buying a house in The Netherlands may be more favourable than renting as there are major advantages in owning a house.

Most important is that interest paid on a  mortgage on your primary residence is fully tax deductible, as well as mortgage related expenses. It goes without saying that this can lead to very substantial tax deductions. The maximum tax deduction rate will be gradually limited, but is still an advantageous facility. Also, the interest rate for mortgages is at its lowest in the Netherlands now, which makes your monthly expenses lower than in case you would rent a house. The tax relief can be paid in monthly instalments during the year, after filing the tax form for a provisional refund for mortgage relief, to be requested at the tax authorities. We can help you filing the form.

If you move out of the country again you can rent the house out, sell it, or keep it for own use. If you keep it for own use in some circumstances the property can remain in box 1 with mortgage interest deduction. In case you sell the property, please note: there is no capital gains tax. As international tax advisors we can advice you about your specific housing situation, as we know it can can be quit complicated when you for example in case you own houses in more than one country.

If you own a listed monument or listed historic building the expenses for restoration and maintenance are deductible too. Costs of mere changes to a building do not qualify as such, but could yet lead to partial deduction. As matters relating to monuments and historic buildings form one of our specialities we know how to get the most out of the legislation and especially the applicable case law. Also foreign listed properties might qualify for this deduction, following recent case law.

Please note: apart from the above substantial tax advantages there is no capital gains tax!