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Mortgage interest deduction in the Netherlands
In the Netherlands you can deduct the interest on the mortgage for your own home from your taxable income. Here is how it works in 2026 and which conditions apply.
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Short answer: You can deduct the interest on a mortgage for your own main residence, at a maximum rate of 37.56% in 2026. The condition is that you repay the loan at least on an annuity or linear basis within 30 years. At the same time, you add a notional rental value (eigenwoningforfait) of 0.35% of the WOZ value to your income. Non-residents can only deduct if they qualify as a qualifying foreign taxpayer.
Conditions for the mortgage interest deduction
- Your own main residence: the loan is used to buy, improve or maintain the home you live in. While the home is rented out, you cannot deduct the interest.
- Repayment: you repay the loan at least on an annuity or linear basis within 30 years.
- Maximum 30 years: you can deduct interest for a total of up to 30 years.
- Maximum rate: in 2026 the deduction is capped at 37.56%. The cap also applies to other home-ownership deductions, such as notary and advice fees for the mortgage.
New interest-only loans do not qualify. Such loans are only deductible under transitional rules if they already existed before 2013.
The notional rental value (eigenwoningforfait)
As a homeowner you add a fixed percentage of the WOZ value of your home to your income: 0.35% for homes worth €75,000 to €1,350,000 in 2026. Above €1,350,000, 2.35% applies to the part above that amount. You deduct your mortgage interest from this amount.
| Example | Amount |
|---|---|
| Mortgage €400,000 at 4%, interest in the first year (roughly) | €16,000 |
| Notional rental value, WOZ value €400,000 (0.35%) | €1,400 |
| Net deductible amount | €14,600 |
| Tax benefit at up to 37.56% | up to about €5,480 |
This is a simplified example; with an annuity mortgage the interest goes down every year. Your actual benefit depends on your income and tax rate. You can receive the benefit monthly by requesting a provisional assessment from the tax authorities. Calculate it in Dutch with hypotheekrenteaftrek berekenen.
How you receive the money
You can receive the benefit in two ways:
- Once a year: you file your income tax return after the end of the year and receive the amount afterwards.
- Every month: you request a provisional assessment (voorlopige aanslag) from the tax authorities. They then pay you a fixed amount each month, so your net housing costs are lower from the start.
The monthly route is common among homeowners in the Netherlands. If your situation changes, for example because you repay extra or your income changes, adjust the provisional assessment so you do not have to pay back a large amount later.
Which loans qualify, and which do not
| Loan | Interest deductible? |
|---|---|
| Mortgage used to buy, improve or maintain your main home | Yes, with annuity or linear repayment within 30 years |
| Extra borrowing for a renovation of your own home | Yes, under the same conditions; keep your invoices |
| Extra borrowing for a car, holiday or other spending | No, that part is not an eligible home loan |
| New interest-only loan | No; only loans that already existed before 2013 keep the old rules |
| Mortgage on a second home or a home you rent out | No, that falls under box 3 |
| Advice and notary costs for the mortgage | Yes, deductible in the year you pay them |
Mixed loans are common: part of your mortgage may qualify and part may not. Your adviser and the lender split the loan into parts so that the deductible share is clear from the start.
Non-residents and the qualifying foreign taxpayer
Do you live outside the Netherlands but pay Dutch tax? You can deduct mortgage interest as a qualifying foreign taxpayer (kwalificerend buitenlands belastingplichtige) if you live in the EU, the EEA, Switzerland or Bonaire, Sint Eustatius or Saba, and at least 90% of your worldwide income is taxed in the Netherlands. The same conditions as for residents then apply. Non-residents who do not qualify cannot deduct mortgage interest.
Receiving the 30% ruling? That is a separate arrangement: if you meet the normal conditions, you can deduct your mortgage interest as usual.
Frequently asked questions about the mortgage interest deduction
What is the maximum mortgage interest deduction rate in 2026?
37.56%. If your income is taxed at a lower rate, you deduct at that lower rate.
Can I deduct interest on an interest-only mortgage?
Not on new loans. Interest on an interest-only loan is only deductible under transitional rules if the loan already existed before 2013.
Can I deduct mortgage interest if I rent out my home?
No. While the home is rented out, it is not your main residence and you cannot deduct the interest.
Are mortgage advice fees deductible?
Yes, advice and arrangement fees for the mortgage on your own home are deductible in the year you pay them, also capped at 37.56%.
Related guides
Read our expat mortgage guide, see how much you can borrow with the mortgage calculator, or read about buying a house in the Netherlands.
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