Buying a new-build home in the Netherlands works differently from buying an existing property. One of the Dutch terms you are likely to encounter is bouwrente.
Bouwrente is interest connected to costs already incurred by the developer or contractor before you are able to pay those costs through your mortgage. Depending on when the interest relates to, it may or may not be tax deductible.
That distinction is important. Two amounts can both be described as bouwrente in your purchase documents while receiving completely different tax treatment.
For expats buying a new-build home in the Netherlands, understanding bouwrente before signing the purchase and construction agreement can prevent unexpected costs later.
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What Is Bouwrente?
Bouwrente literally means construction interest.
When a developer builds a new property, money is already being spent before you become the legal owner. The developer may have purchased the land, started construction, or paid contractors and suppliers.
If you buy into the project after some of these costs have already been incurred, the developer may charge interest on the money that has effectively been advanced on your behalf.
This interest is commonly called bouwrente.
The most important point is that the Dutch term bouwrente can cover different periods.
For tax purposes, you need to know exactly when the interest arose.
Bouwrente Before and After Signing the Purchase Agreement
The easiest way to understand bouwrente is to divide the new-build purchase into three periods.
| Period | Typical type of interest | Tax deductible? |
|---|---|---|
| Before signing the purchase/construction agreement | Financieringsvergoeding | No, not directly |
| After signing the agreement but before the mortgage deed | Uitstelrente or bouwrente | Usually yes, subject to Dutch own-home rules |
| After the mortgage deed has been signed | Mortgage interest and renteverlies tijdens de bouw | Different rules apply |
The date on which you sign the koop-/aannemingsovereenkomst, or purchase and construction agreement, is therefore extremely important.
Bouwrente Before Signing: Financieringsvergoeding
Suppose construction of a new-build project started before you bought the property.
The developer may already have paid for:
The land
Groundwork
Foundations
Construction materials
Labour
Completed construction phases
If you join the project later, the developer may charge interest over these previously incurred costs.
This is often called a financieringsvergoeding.
For Dutch tax purposes, this interest is treated as part of the acquisition cost of the property rather than as deductible mortgage interest.
That means the bouwrente relating to the period before you signed the purchase and construction agreement is not directly tax deductible.
It can often be included in the overall acquisition price. Whether you can finance that amount through your mortgage depends on the property’s value, your maximum mortgage and the lender’s conditions.
If qualifying acquisition costs are financed through an eligible owner-occupied home loan, the interest on that part of the mortgage may itself qualify for mortgage interest deduction.
Bouwrente After Signing: Uitstelrente
The tax treatment changes once you have signed the purchase and construction agreement.
There may be a period between:
Signing the purchase and construction agreement
Signing the mortgage deed at the notary
During this period, construction can continue while the developer is still financing costs.
Interest charged over this period is often called uitstelrente, although it may simply be described as bouwrente in the contract.
This type of bouwrente can generally be deducted for Dutch income tax purposes when the property and financing meet the rules for an owner-occupied home.
This makes the signing date particularly important.
Example
Imagine you sign your purchase and construction agreement on 1 September 2026.
Your mortgage deed is signed on 1 November 2026.
The developer charges interest relating to three different periods:
Interest up to 1 September
Interest from 1 September to 1 November
Mortgage-related interest after 1 November
The interest relating to the period before 1 September forms part of the acquisition costs and is not directly deductible.
The bouwrente relating to the period between 1 September and 1 November may be tax deductible.
After 1 November, you move into a different phase because your mortgage has started and the construction payments can normally be made from the bouwdepot.
Is Bouwrente Tax Deductible in 2026?
The short answer is:
Sometimes.
Whether bouwrente is tax deductible in 2026 depends primarily on the period to which the interest relates.
Bouwrente before the purchase/construction agreement
Not directly tax deductible.
It is generally considered part of the purchase price or acquisition costs.
Bouwrente after the purchase/construction agreement but before the mortgage deed
Generally deductible if the home and financing qualify under the Dutch owner-occupied home rules.
Interest after the mortgage deed
This is normally no longer classic bouwrente paid to the developer.
You are now dealing with your mortgage, construction depot, and possible interest loss during construction.
For a full explanation of the wider Dutch tax rules, see our guide to mortgage interest deduction in the Netherlands in 2026.
How Much Tax Can You Get Back on Bouwrente in 2026?
The fact that an amount is deductible does not mean you receive the full amount back.
A deductible amount reduces your taxable Box 1 income.
Your actual tax benefit therefore depends on your income and tax position.
For taxpayers with a sufficiently high Box 1 income, the deduction for qualifying own-home costs is limited to a maximum rate of 37.56% in 2026.
For example, if €2,000 of qualifying bouwrente is deductible, that does not mean the Dutch tax authorities refund €2,000.
The actual benefit is calculated through your income tax return.
Your personal situation can differ, especially if you have foreign income, recently moved to the Netherlands, or have other deductible housing costs.
What Is the Bouwrente Percentage in 2026?
There is no fixed national bouwrente percentage for 2026.
Unlike certain government thresholds, bouwrente is not set at one standard percentage for every new-build development.
The rate is normally specified by the developer or contractor in the purchase and construction agreement.
The percentage can therefore differ between projects.
Before signing, check:
The annual bouwrente percentage
The amount over which interest is calculated
The start date
Whether the rate applies before or after signing
Which construction instalments have already fallen due
Whether interest is included in the purchase price
Whether additional interest starts accumulating after you sign
When the mortgage and construction depot are expected to become available
Do not compare two new-build properties using the advertised purchase price alone.
A property that has already been under construction for several months can have a different cost structure from a project where construction has not yet started.
How to Calculate Bouwrente
A simplified bouwrente calculation is:
Outstanding amount x annual interest rate x time period
Suppose:
Outstanding construction costs: €120,000
Bouwrente percentage: 5.5%
Period: 60 days
A simple estimate would be:
€120,000 x 5.5% x 60 / 365 = approximately €1,085
This is only an example.
The exact amount depends on the agreement and on which construction instalments have already become payable. Developers may also specify how days and payment periods are calculated.
Always use the figures in your actual purchase and construction agreement when determining your expected bouwrente.
Can You Finance Bouwrente Through Your Mortgage?
Sometimes.
Whether bouwrente can be financed depends on:
The type of bouwrente
The property’s appraised or accepted value
Your income
Your maximum borrowing capacity
The mortgage lender
The total new-build budget
The structure of the mortgage
There is also an important tax distinction.
If the bouwrente relates to the period before signing your purchase and construction agreement, it forms part of the acquisition cost. Financing it can therefore be treated differently from borrowing money specifically to pay interest that was already deductible.
If deductible bouwrente arising after the purchase agreement is financed separately, the interest on the money borrowed to pay that deductible interest is generally not itself tax deductible.
This is one of the reasons it is useful to have your mortgage structure checked before signing the new-build contract.
At Expat Mortgage Platform, we can calculate how the project price, bouwrente, construction instalments, own funds and mortgage fit together before you commit.
Book a free mortgage consultation.
Bouwrente vs Bouwdepot
Bouwrente and a bouwdepot are not the same thing.
A bouwdepot is a construction deposit held by your mortgage lender.
Instead of receiving the entire mortgage amount directly, part of the mortgage is placed into this depot. Construction invoices are then paid from the depot as the work progresses.
For example:
You take out a €500,000 mortgage for a new-build home.
At the notary, €200,000 may already be needed for the land and completed construction stages.
The remaining €300,000 can stay in the bouwdepot.
As the contractor completes new stages, invoices are paid from that €300,000.
Read our complete comparison of new-build and existing homes in the Netherlands if you are still deciding which type of property suits you.
Do You Receive Interest on a Bouwdepot?
Usually, the money remaining in a construction depot generates a form of depot interest.
At the same time, you pay mortgage interest on your mortgage.
As money leaves the depot to pay construction invoices, the balance becomes smaller. The interest you receive on that remaining balance therefore normally decreases.
Your mortgage interest does not necessarily decrease at the same rate.
The difference is commonly referred to as renteverlies tijdens de bouw, or interest loss during construction.
Bouwrente vs Renteverlies Tijdens de Bouw
These terms are frequently confused, but they refer to different things.
Bouwrente
Interest paid to the developer or contractor in connection with costs incurred before your mortgage becomes available.
Renteverlies tijdens de bouw
The net interest cost that arises after your mortgage has started while your new-build property is still being constructed.
For example:
You pay €12,000 in mortgage interest during the year.
You receive €7,000 in interest through the construction depot.
Your net interest cost is:
€12,000 – €7,000 = €5,000
Subject to the applicable Dutch tax rules, this net amount may qualify for mortgage interest deduction.
The Two-Year Rule for a New-Build Construction Depot
Dutch tax rules contain a special treatment for new-build construction deposits.
For up to two years, the interest you receive on money still held in the new-build depot is generally offset against the mortgage interest you pay.
In simplified form:
Mortgage interest paid – depot interest received = potentially deductible interest
The two-year period starts from the purchase or construction agreement under the applicable rules.
After this period, the tax treatment can change, particularly for money that remains unused in the construction depot.
For large new-build projects with long construction periods, this deserves attention before you choose a mortgage.
What Is a Bouwrentedepot?
A bouwrentedepot or interest depot is different from the normal bouwdepot used to pay construction invoices.
Some mortgage structures allow an additional amount to be reserved to help cover interest costs during construction.
This can be useful because new-build buyers sometimes face double housing costs.
You could simultaneously be paying:
Rent on your current home
Mortgage costs for the new property
Construction-related costs
Additional finishing costs
Using borrowed money to pay interest can, however, have tax consequences.
Do not assume that interest paid from an interest depot automatically remains fully tax deductible.
The mortgage structure should be assessed before deciding to finance these costs.
Double Housing Costs When Buying New Build
Bouwrente is only one part of the cash-flow challenge involved with new construction.
A new-build property may take months or even more than a year to complete.
During this period you may still have to pay for your existing home.
Potential costs include:
Current rent or mortgage
Mortgage interest on the new property
Mortgage repayments
Bouwrente
Additional construction work
Kitchen upgrades
Bathroom upgrades
Flooring
Painting
Garden work
Moving costs
This is why comparing only the advertised purchase price can be misleading.
Our guide to the costs of buying a house in the Netherlands explains the wider purchase budget.
Is Bouwrente Included in a Vrij op Naam Price?
New-build properties in the Netherlands are often advertised as vrij op naam, usually abbreviated to v.o.n.
This means the cost structure differs from an existing home sold as kosten koper.
However, vrij op naam does not automatically mean that every possible construction-related cost is included without conditions.
Bouwrente can still apply, especially when construction started before you entered the project.
Always review:
The advertised purchase price
The purchase agreement
The construction agreement
Already completed construction instalments
Any financing allowance
Any postponement interest
Additional work or meerwerk
Finishing costs
The total amount you need can therefore be higher than the headline v.o.n. purchase price.
Bouwrente Example for a New-Build Buyer
Consider an expat buying a new-build apartment.
The project started construction on 1 May 2026.
The buyer signs the purchase and construction agreement on 1 September 2026.
The mortgage deed is signed on 1 November 2026.
1 May to 1 September
The developer has already financed the land and construction work.
Interest relating to this period can be included as a financing allowance.
This amount is not directly tax-deductible.
1 September to 1 November
The buyer has committed to the property, but the mortgage has not yet passed at the notary.
The developer continues financing construction costs.
Interest relating to this period may qualify as deductible bouwrente.
After 1 November
The mortgage has started.
Future construction instalments can normally be paid from the bouwdepot.
The buyer now pays mortgage interest and may receive interest on money remaining in the depot.
The difference can create renteverlies tijdens de bouw.
This example shows why asking only “Is bouwrente deductible?” is not enough.
The correct question is:
Which period does my bouwrente relate to?
Does Being an Expat Change the Bouwrente Rules?
There is no separate bouwrente system specifically for expats.
The main Dutch tax and mortgage principles are the same.
However, international buyers can have additional factors that affect the mortgage or tax position, including:
Residence status
Foreign income
Income paid in another currency
A partner living or working abroad
Temporary employment
Recently becoming a Dutch tax resident
Existing property abroad
Foreign debts
Self-employment
That is why an online explanation can tell you how bouwrente works in general, but it cannot determine the exact outcome of your mortgage application.
You can get an initial borrowing estimate with our mortgage calculator for expats.
What Should You Check Before Signing a New-Build Contract?
Before signing, make sure you know:
When construction officially started.
Which construction instalments have already become payable.
How much bouwrente is already included in the purchase price.
Which interest relates to the period after you sign.
What bouwrente percentage the developer uses.
When your mortgage is expected to be completed.
How much money will enter the bouwdepot.
How your lender calculates depot interest.
Whether you can afford the temporary double housing costs.
How much you need for additional work and finishing.
Which costs can be financed.
Which costs need to be paid from your own savings.
Buying a new-build property is financially very different from purchasing an existing home.
Understanding these figures before signing gives you far more control over the process.
Frequently Asked Questions About Bouwrente
What is bouwrente in English?
Bouwrente can be translated as construction interest or building interest. It generally refers to interest charged in connection with costs that a developer or contractor has already financed during a new-build project.
Is bouwrente tax deductible in 2026?
Bouwrente relating to the period before you sign the purchase and construction agreement is generally not directly deductible. Bouwrente relating to the period after signing the agreement but before signing the mortgage deed can generally be deductible if you meet the Dutch own-home requirements.
What is the bouwrente percentage in 2026?
There is no standard Dutch bouwrente percentage for 2026. The rate is determined by the developer or contractor and should be stated in the project’s purchase or construction documents.
How do I calculate bouwrente?
A simple estimate can be made by multiplying the outstanding amount by the annual bouwrente percentage and adjusting the result for the number of days or months involved. The contract determines the exact calculation.
Can bouwrente be included in my mortgage?
Some bouwrente or acquisition costs may be financed if your income, mortgage limit, property value and lender allow it. The tax consequences depend on the type of bouwrente being financed.
Is bouwrente the same as hypotheekrente?
No. Bouwrente is normally paid to the developer or contractor before the mortgage financing becomes available. Hypotheekrente is the interest you pay to your mortgage lender.
Is bouwrente the same as a bouwdepot?
No. Bouwrente is an interest cost. A bouwdepot is an account or construction deposit containing mortgage funds that are used to pay construction invoices.
What is renteverlies tijdens de bouw?
Renteverlies tijdens de bouw is the difference between mortgage interest you pay and the interest you receive on money remaining in the construction depot while the property is being built.
Do I pay bouwrente on every new-build home?
Not necessarily. Whether you pay it depends on the project, the stage of construction when you buy, and the conditions in the purchase and construction agreement.
Can I negotiate bouwrente?
The bouwrente rate is normally determined by the developer and stated in the project documentation. Whether there is room to negotiate depends on the project and contract. Large developments often use standard conditions for all buyers.
When does bouwrente stop?
Classic bouwrente paid to the developer generally stops once the relevant outstanding construction costs can be paid, often around the point at which the mortgage deed has been signed and mortgage funds become available.
Do expats get the same bouwrente tax deduction?
The basic Dutch own-home tax rules do not contain a separate bouwrente regime for expats. Your individual tax residency, property use, and mortgage structure can still affect the final result.
Buying a New-Build Home in the Netherlands?
A new-build home can be an attractive choice for expats. You can benefit from modern construction, good energy efficiency and lower maintenance requirements.
The financing process, however, is more complex than simply arranging a mortgage for the purchase price.
Bouwrente, the construction depot, staged payments, double housing costs, and additional work all need to fit within the same financial plan.
Expat Mortgage Platform can help you determine:
How much you can borrow
How much cash you need
How bouwrente affects your budget
How the bouwdepot works
Which lenders fit your situation
What your monthly costs will look like during construction
How your expat status affects the mortgage application
Your first consultation is free and without obligation.
Schedule your free mortgage consultation and let us check your new-build financing before you commit.
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