Mortgage Interest Deduction and Tax Refund in the Netherlands (2026)
Buying a house in the Netherlands can come with a significant tax advantage. If you have a qualifying mortgage, you can usually deduct the interest you pay from your taxable income. This is called hypotheekrenteaftrek, or mortgage interest deduction.
For expats, understanding this deduction is particularly important. It can make a noticeable difference to your net monthly housing costs, but the amount you receive depends on your income, mortgage, property value and personal tax situation.
In 2026, the maximum mortgage interest deduction rate is 37.56%. You can receive the tax benefit through your annual income tax return or request monthly payments from the Dutch Tax Authority, the Belastingdienst.
This guide explains how Dutch mortgage tax refunds work, how much you may receive, how to apply, and which expenses you can deduct.
What is a mortgage tax refund in the Netherlands?
A mortgage tax refund is the tax benefit you may receive because certain costs of owning your primary residence are deductible from your taxable income.
Under the Dutch income tax system, mortgage interest on a qualifying owner-occupied home is generally deductible in Box 1, which covers income from work and your main residence.
The deduction reduces the income on which you pay tax. Depending on your situation, this can result in a lower tax bill or a refund of tax you have already paid.
For example, suppose you pay €12,000 in qualifying mortgage interest during a year. You may be able to deduct this amount from your taxable income. However, that does not mean the Belastingdienst will transfer €12,000 to your bank account.
Your actual tax benefit depends on the applicable tax rates, the property’s eigenwoningforfait and other elements of your income tax calculation.
For this reason, it is important to distinguish between:
Mortgage interest deduction: The amount you can deduct from your taxable income.
Mortgage tax refund: The resulting reduction in tax, which may lead to a payment from the Belastingdienst.
Provisional tax refund: An advance payment based on your estimated annual tax situation.
How much mortgage interest can you deduct in 2026?
The maximum mortgage interest deduction rate in the Netherlands is 37.56% in 2026, compared with 37.48% in 2025.
For people who have not reached the Dutch state pension age, the 2026 Box 1 income tax brackets are:
| Taxable annual income | Income tax rate |
|---|---|
| Up to €38,883 | 35.75% |
| €38,883 to €78,426 | 37.56% |
| Above €78,426 | 49.50% |
If your income falls within the highest bracket, you cannot deduct mortgage interest at the full 49.50% rate. The deduction benefit attributable to the highest bracket is limited to 37.56%.
For lower incomes, different tax rates may apply. The effect on tax credits can also influence the final benefit. Different first-bracket rates apply to people who have reached state pension age.
The 37.56% figure is therefore a maximum deduction rate, not a guaranteed refund percentage for every homeowner.
Does the 37.56% deduction apply to expats?
Yes. Your nationality does not determine whether you qualify for the Dutch mortgage interest deduction.
An expat who lives and pays income tax in the Netherlands can generally qualify under the same mortgage interest deduction rules as a Dutch citizen.
The most important considerations are your tax position, the property you own and the mortgage agreement.
If you receive the 30% ruling, your taxable salary may be structured differently. This can affect the calculation of your tax benefit, so your mortgage deduction should be assessed alongside your employment and tax arrangements.
Mortgage tax refund calculator: how much could you get back?
You can estimate your Dutch mortgage tax refund by combining the qualifying mortgage interest you pay with your property’s taxable owner-occupied value.
The following simplified example illustrates the calculation for 2026.
Example: €12,000 annual mortgage interest
Suppose you have:
Annual qualifying mortgage interest: €12,000
Property WOZ value: €400,000
Applicable eigenwoningforfait: 0.35%
Assumed tax rate for the entire example: 37.56%
| Calculation | Amount |
|---|---|
| Annual mortgage interest | €12,000 |
| Eigenwoningforfait: €400,000 × 0.35% | €1,400 |
| Net deduction from taxable income | €10,600 |
| Estimated tax benefit: €10,600 × 37.56% | €3,981 |
| Equivalent average monthly benefit | €332 |
In this example, your estimated annual tax advantage is approximately €3,981, equivalent to €332 per month.
This calculation assumes that the relevant income falls within the 37.56% bracket and ignores other tax adjustments, including changes to tax credits. Your actual result can therefore be higher or lower.
It also assumes you paid €12,000 in qualifying interest during the year. With an annuity or linear mortgage, the amount of interest generally decreases as you repay the loan.
How do you calculate your monthly mortgage tax refund?
A simplified calculation is:
Determine the qualifying mortgage interest paid during the year.
Calculate the applicable eigenwoningforfait using your WOZ value.
Subtract the eigenwoningforfait from the qualifying interest and other deductible housing costs.
Estimate the income tax effect using your personal tax situation.
Divide the annual tax advantage by 12 to estimate an average monthly benefit.
This method is useful for budgeting, but it is not a substitute for a complete income tax calculation.
If you recently purchased your property, remember that you may have owned it for only part of the year. You may also have incurred one-off deductible mortgage arrangement costs.
Both circumstances can significantly affect your first-year tax refund.
For an estimate of your borrowing capacity and gross mortgage payments, use our mortgage calculator for expats in the Netherlands.
What is the eigenwoningforfait and why does it affect your refund?
The eigenwoningforfait is an amount that the Dutch tax authorities add to your taxable income because you own and occupy a home.
It is based on the official municipal property valuation, called the WOZ value.
In 2026, most owner-occupied properties with a WOZ value between €75,000 and €1,350,000 have an eigenwoningforfait of 0.35%.
For properties valued above €1,350,000, a different calculation applies to the amount exceeding that threshold.
For example, a property with a WOZ value of €500,000 has an eigenwoningforfait of €1,750.
This amount increases your taxable income and can partially offset the tax benefit of your mortgage interest deduction.
That is why calculating your refund as mortgage interest multiplied by 37.56% can produce an inaccurate estimate.
The Belastingdienst applies the relevant rules when determining your actual income tax assessment.
Who qualifies for mortgage interest deduction in the Netherlands?
You can generally claim mortgage interest deductions if your situation meets the following conditions.
1. The property is your primary residence
The property must normally qualify as your main home under Dutch tax law.
Mortgage interest on a second home or investment property is generally not deductible under the Box 1 owner-occupied home rules.
Special provisions can apply when you are moving house, temporarily own two properties or purchase a home that is still under construction.
2. The loan finances your own home
The mortgage or loan must be used for qualifying purposes, such as:
Purchasing your primary residence
Financing qualifying improvements or renovations
Paying qualifying costs associated with the acquisition of your home
Financing certain owner-occupied property rights
Borrowing additional money to purchase a car, finance a holiday or cover unrelated personal expenses does not create a mortgage interest deduction simply because your home serves as collateral.
3. Your mortgage meets the repayment requirements
For qualifying mortgage debt first taken out on or after 1 January 2013, the loan must generally be repaid at least according to an annuity or linear repayment schedule within 30 years.
An annuity mortgage involves regular payments in which the proportion of interest gradually decreases and the proportion of repayment increases.
With a linear mortgage, you repay a fixed amount of principal each period, resulting in decreasing interest costs.
Older mortgage debts may qualify under transitional arrangements, including certain interest-only mortgages.
If you have an existing interest-only loan, see our guide to interest-only mortgage rules in the Netherlands.
4. You meet the applicable Dutch tax requirements
Your entitlement also depends on your income tax position.
Expats who are Dutch tax residents can generally use the owner-occupied home deduction if the other conditions are met.
Different rules apply if you live outside the Netherlands or have income and property in multiple countries.
5. You remain within the deduction period
Mortgage interest is generally deductible for a maximum of 30 years per qualifying loan or loan component.
Refinancing or moving does not automatically restart that period for an existing mortgage debt.
For mortgage interest deductions that began before 2001, the statutory 30-year period started on 1 January 2001.
How to apply for a mortgage tax refund in the Netherlands
You have two main options for claiming your mortgage-related tax benefit.
Option 1: Claim your mortgage deduction through your annual tax return
You can include the qualifying mortgage interest and related expenses in your Dutch annual income tax return.
The steps are:
Log in to Mijn Belastingdienst.
Open your income tax return for the relevant year.
Check the section concerning your own home, mortgage and other debts.
Verify the mortgage details, interest paid and applicable WOZ value.
Enter any additional qualifying mortgage arrangement costs.
Check the calculation and submit your return.
Some mortgage information may already be prefilled, but you remain responsible for checking whether it is accurate and complete.
After processing your return, the Belastingdienst determines whether you need to pay additional tax or are entitled to a refund.
Option 2: Receive your mortgage tax refund monthly
If you prefer to receive your estimated tax benefit throughout the year, you can request a voorlopige aanslag.
This is a provisional income tax assessment based on your estimated financial situation for the relevant calendar year.
If the calculation shows that you are entitled to a refund, the Belastingdienst can pay that amount in instalments.
To apply:
Visit Mijn Belastingdienst.
Log in using DigiD.
Choose the option to request or change a provisional income tax assessment.
Select the relevant tax year.
Enter your expected income and applicable personal information.
Provide your property’s WOZ value and expected mortgage interest.
Include qualifying mortgage-related costs where applicable.
Review the estimated result and submit your application.
The Belastingdienst will assess your application and communicate the outcome.
The payment amount and schedule depend on your provisional assessment and the time of year in which it is issued.
You must still reconcile your actual income and deductible costs through the relevant annual income tax return.
Monthly versus annual mortgage tax refunds: which is better?
Receiving your tax benefit monthly or annually generally does not change the underlying deduction entitlement.
The main difference is when you receive the money.
| Monthly provisional refund | Annual tax return |
|---|---|
| Estimated benefit paid during the year | Tax position settled after the tax year |
| Can help with monthly household cash flow | No advance refund estimates required |
| Must be updated when circumstances change | Uses actual figures for the completed year |
| May result in repayment if you receive too much | Any refund depends on your final assessment |
For many expat homeowners, monthly payments make budgeting easier.
However, your monthly provisional refund is only an estimate. If you receive more than your final entitlement, you may need to repay the difference.
You do not lose the underlying annual deduction merely because you did not request monthly payments.
When does the Belastingdienst pay your mortgage tax refund?
If you have an approved provisional assessment showing a refund, the Belastingdienst generally pays the amount according to the payment schedule for that assessment.
The first payment depends on when your request is processed. A later application can therefore result in a payment pattern different from receiving one-twelfth of the estimated annual amount every month.
For annual income tax returns, the timing depends on when you submit your return and when your assessment is issued.
You can check the relevant information and payment status through Mijn Belastingdienst.
Which mortgage costs are tax-deductible in the Netherlands?
In addition to qualifying mortgage interest, several financing costs may be deductible.
Some of these expenses are particularly relevant in the year you purchase your property.
Deductible mortgage costs
| Expense | Tax treatment |
|---|---|
| Qualifying mortgage interest | Generally deductible |
| Mortgage advice and arrangement fees | Generally deductible |
| Valuation costs required to obtain financing | Generally deductible |
| Notary costs for the mortgage deed | Generally deductible |
| Land registry costs for the mortgage deed | Generally deductible |
| National Mortgage Guarantee (NHG) application fee | Generally deductible |
| Certain mortgage refinancing and penalty interest costs | Deductible under applicable conditions |
| Certain construction or renovation loan financing costs | Deductible under applicable conditions |
| Qualifying periodic ground lease payments | Generally deductible |
Costs that are normally not deductible
| Expense | Tax treatment |
|---|---|
| Property transfer tax | Not deductible |
| Estate agent commission for buying the home | Not deductible |
| Notary costs for the property transfer deed | Not deductible |
| Bank guarantee costs for the purchase deposit | Not deductible |
| Mortgage principal repayments | Not deductible |
| Regular home maintenance paid from savings | Not deductible |
| Buildings insurance premiums | Not deductible |
| Interest on borrowing for unrelated personal spending | Not deductible |
The distinction between mortgage financing costs and property purchase costs is important.
For example, a notary may charge separately for transferring ownership and establishing the mortgage. The costs relating to the mortgage deed may be deductible, while the property transfer deed costs are not.
If you are planning to purchase a property, read our guide to the costs of buying a house in the Netherlands for expats.
Does the 30% ruling affect mortgage interest deduction?
Expats benefiting from the 30% ruling can still potentially qualify for Dutch mortgage interest deductions.
The 30% ruling is an employment-related tax facility. It does not automatically create or remove an entitlement to deduct mortgage interest.
However, the arrangement can influence the taxable portion of your salary and therefore the final income tax calculation.
The answer can also depend on your tax residency, other sources of income and the rules applicable to your particular employment arrangement.
When purchasing a home, it is sensible to calculate your expected mortgage expenses using your actual taxable income rather than assuming your entire gross employment package is taxed in the same way.
Can you claim mortgage interest deduction with a foreign mortgage lender?
Potentially, yes.
A loan from a foreign bank can qualify for Dutch mortgage interest deduction if it meets the relevant conditions for an owner-occupied home loan.
The lender does not necessarily need to be established in the Netherlands.
However, the loan must meet the applicable requirements concerning its purpose, repayment structure and reporting.
Expats who have arranged financing abroad should check their loan documentation carefully before assuming it qualifies.
Can you split mortgage interest deductions with your partner?
If you and your partner qualify as Dutch fiscal partners, you may generally allocate the combined taxable income and deductions relating to your owner-occupied home between you in your income tax returns.
This can affect the overall tax outcome.
The most advantageous allocation depends on your respective incomes, other tax deductions and applicable tax credits.
Simply assigning the full deduction to the highest earner does not always produce the best result.
What happens to your mortgage tax refund when you move or refinance?
Your mortgage interest deduction can change when your housing or financial situation changes.
Examples include:
Selling your current home
Purchasing another primary residence
Refinancing your mortgage
Making additional mortgage repayments
Changing your mortgage interest rate
Separating from your partner
Changing your taxable income
Renting out your property
If you previously sold a property at a profit, the Dutch bijleenregeling may limit the amount of new mortgage debt that qualifies for interest deductions.
A lower mortgage interest rate or a smaller outstanding mortgage balance also normally means less interest is available to deduct.
If you receive monthly provisional refunds, remember to update your provisional assessment when your circumstances change.
This helps prevent unexpected repayment obligations.
Is mortgage interest deduction ending in 2031?
There is no general rule under which every Dutch homeowner loses mortgage interest deduction in 2031.
The confusion largely relates to the individual 30-year deduction period.
For mortgage debts subject to a deduction period that started on 1 January 2001, that period can end after 2030.
Other mortgage debts can have different deduction end dates, depending on when the relevant entitlement began.
Policy discussions about the future of mortgage interest deduction should not be confused with a legally established abolition date for everyone.
If you have an older mortgage or previously owned property in the Netherlands, checking your individual deduction history is particularly important.
Frequently asked questions about mortgage tax refunds in the Netherlands
How much mortgage tax refund can I get in the Netherlands?
The amount depends on your qualifying mortgage interest, taxable income, WOZ value and personal tax circumstances. In 2026, the maximum mortgage interest deduction rate is 37.56%, but this is not necessarily the percentage you receive back.
Can expats claim mortgage interest deduction in the Netherlands?
Yes. Expats can generally qualify if they meet the applicable Dutch tax requirements and their mortgage finances a qualifying owner-occupied home.
Can I get my mortgage tax refund every month?
Yes. You can apply for a provisional income tax assessment through the Belastingdienst. If your assessment shows an entitlement to a refund, you may receive payments during the year.
Is mortgage principal repayment tax-deductible?
No. The amount you repay towards the outstanding mortgage principal is not deductible. Qualifying mortgage interest and certain financing expenses may be deductible.
Do I need to apply for mortgage interest deduction every year?
You must account for your income and applicable deductions in your annual tax return. If you receive a provisional refund, it is important to keep the estimate up to date and check the final annual assessment.
Can I claim mortgage interest when buying my first home?
Generally, yes, provided you meet the applicable conditions. First-time buyers should also check whether their mortgage advice, valuation and mortgage deed costs qualify for deductions in the purchase year.
Is the mortgage interest deduction available on an interest-only mortgage?
For newly created mortgage debt from 2013 onwards, interest-only repayment generally does not meet the requirements for deduction. Older qualifying mortgage debts may fall under transitional rules.
Is a mortgage tax refund the same as a transfer tax refund?
No. Mortgage interest deduction concerns Dutch income tax. Property transfer tax is a separate tax associated with acquiring property and is generally not deductible from your income.
Can I still claim the deduction if I forgot to request monthly payments?
Yes. Not requesting a provisional refund does not remove your underlying entitlement. You can generally claim qualifying deductions through your annual income tax return.
Does mortgage interest deduction make buying cheaper than renting?
It can reduce the effective cost of homeownership, but it is only one factor. Mortgage principal repayments, maintenance, insurance, municipal taxes, transaction costs and the expected period of ownership also matter.
For a wider comparison, read our renting versus buying guide for expats.
Calculate your net mortgage costs with Expat Mortgage Platform
Your mortgage tax refund can make an important difference to your monthly budget. However, the amount depends on your mortgage structure, taxable income and property details.
At Expat Mortgage Platform, we help international buyers understand their mortgage options and expected housing costs in the Netherlands.
During a free introductory consultation, we can help you understand:
Your available mortgage options
The difference between gross and estimated net mortgage payments
How annuity and linear mortgages affect your future interest costs
Which mortgage-related expenses may qualify for deductions
The information needed for a more detailed personal tax calculation
For individual tax filing questions or complex international tax arrangements, a qualified tax adviser may also be needed.
Want to know what buying a house in the Netherlands could cost you after tax?
Book a free, non-binding consultation with Expat Mortgage Platform and let us help you make an informed decision.
