Mortgage interest deduction in the Netherlands

If you have a mortgage in the Netherlands, you may be able to reduce your taxable income through mortgage interest deduction. The rules depend on your personal situation, how your loan is structured and how the property is used.

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How the Dutch tax system reduces your housing costs

What is mortgage interest deduction in the Netherlands?

Mortgage interest deduction allows you to deduct the interest paid on a qualifying mortgage from your taxable income.

This applies to a loan that qualifies as an eigenwoningschuld and is used for a home you live in as your main residence. By lowering your taxable income, this may reduce your overall tax burden and net monthly housing costs.

The exact benefit depends on your income, mortgage structure and tax position. These rules are based on Dutch tax legislation and applied by the Belastingdienst.

Key conditions for qualifying

When are you eligible for mortgage interest deduction?

You may qualify if your mortgage meets specific conditions. The most important is that the loan is an eigenwoningschuld linked to your main residence. In practice:

  • The loan is used to buy, improve or maintain your home.
  • You live in the property yourself.
  • You usually have only one main residence.

For mortgages from 1 January 2013 onwards, interest is only deductible if the loan is repaid on an annuity or linear basis within 30 years. If not, the interest is generally not deductible.

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Understanding your tax benefit

How much mortgage interest deduction can you get?

The amount of mortgage interest deduction depends on your income, interest payments and tax position.

Interest is deducted in Box 1, and the tax relief is aligned with the basic income tax rate (37.56% in 2026). The effective benefit may be lower in practice.

The eigenwoningforfait, a notional amount based on your property value, is added to your income and reduces the overall benefit.

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From gross payments to net housing costs

How does mortgage interest deduction affect your monthly costs?

Mortgage interest deduction reduces your net costs, not your monthly payment to the lender.

You pay the full amount, and the tax benefit is applied through your income tax return or provisional refund. As a result, your net monthly costs are often lower than your gross payment.

This difference varies per person, depending on income and tax position.

What you need to know as an international buyer

Mortgage interest deduction for expats in the Netherlands

For expats, the general rules are the same, but eligibility depends on your tax situation. Key considerations:

You must be taxable in the Netherlands
You need to pay income tax in the Netherlands on the property. Non-residents may qualify under specific conditions.

Income requirements may apply
Often, at least 90% of your worldwide income must be taxed in the Netherlands.

The property must be your main residence
Second homes and investment properties do not qualify in the same way.

Your mortgage must meet Dutch requirements
Including annuity or linear repayment and qualification as an eigenwoningschuld.

Foreign income and lenders
Foreign income can affect your tax position. A foreign mortgage may still qualify if it meets Dutch rules.

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