How does the Dutch tax system help me when I buy a house?
As all tax systems, the Dutch tax system is complex. Use your favourite search engine and look for ‘Deloitte Tax Highlights Netherlands’. It will give you a brief overview of the working of Dutch tax system. Another helpful website is the English version of the official Dutch Tax Authority. The financial consultants at Van Bruggen Adviesgroep are of course also more than happy to help you understand the (basics) of the Dutch tax system.
For potential property owners it is important to know that interest on a mortgage is only (partially) tax deductible if the property is your main property of residence. The repayments are never tax deductible. There is no capital gain tax in the Netherlands for gains on the selling of your main property of residence. However, selling you property with a profit can have fiscal consequences in certain circumstances. Ask you financial consultant for the details.
These costs are tax deductible when buying a house:
- Professional valuation: Mortgage providers will ask for a professional valuation of your desired property.
- Financial advice: Most people do not have the knowledge and relevant experience to select a mortgage.
- Mortgage deed: When buying a house in the Netherlands you will have to make use of an official notary. Dutch notaries are civil law notaries. They are fully qualified legal professionals.
These costs are tax not deductible when buying a house:
- The fees of your real estate agent.
- The 2% ’overdrachtsbelasting’. This is a tax imposed on all housing transactions and is normally paid buy the new home owner.
- Completion contract: When buying a house in the Netherlands you will have to make use of an official notary.
Are your costs not included in these lists? Do you have other questions considering your Dutch mortgage? Please do contact us. We are looking forward to helping you.