What tax benefits come with buying a home?

Buying a home in the Netherlands is often seen as one of the smartest financial steps you can take. This is not only due to the potential increase in the value of the property, but mainly due to the extensive system of tax benefits. The Dutch government promotes home ownership through the tax authorities, so that the net monthly costs of a home for sale are often more favourable than those of a rental property in the free sector.

In the current housing market of 2026, some rules have changed, but the core benefits remain. Whether you are a starter or moving on to the next home: these are the most important tax items that you can benefit from immediately.

Mortgage interest deduction: The best-known post

The mortgage interest deduction is still the cornerstone of Dutch housing policy. It means that you can deduct the interest you pay on your home debt from your taxable income in Box 1.

• How it works: As a result, your taxable income decreases, so you pay less income tax. So you actually get part of the interest paid back from the tax authorities.
• The conditions: Since 2013, the most important condition has been that you repay the mortgage in full and at least in accordance with an annuity or linear schedule in a maximum of 30 years. Transitional arrangements often apply to “old” mortgages from before 2013.
• The rate: In 2026, the deduction rate for everyone was equalized to the base rate (around 37%), regardless of how high your income is.

One-time deductible purchase costs

In the year that you buy the home, you can deduct a significant part of the additional costs (the Buyer Costs) from the tax. This often results in a substantial refund when you file a tax return in the following calendar year.

The following costs are deductible once:

• Mortgage advice and mediation: The costs for your mortgage advisor.
• Notary fees for the mortgage deed: Please note: the costs for the deed of delivery are not deductible.
• Appraisal costs: Provided that the valuation was necessary to obtain the financing.
• Costs for the National Mortgage Guarantee (NHG): The one-off commission you pay.
• Preparation fee: The fee you pay to the bank to keep an interest offer valid for longer.

Hint: Keep all invoices from the notary, appraiser and advisor securely. These form the burden of proof for your declaration.

The starters exemption (Transfer tax)

While this isn't technically a “deduction,” it's a huge tax advantage when you buy it. Normally, you pay 2% transfer tax on the purchase price.

For a few years (and even in 2026), starters between the ages of 18 and 35 have not had to pay transfer tax for homes up to a certain value (the home value limit, which will be around €525,000 in 2026). With a five-ton house, you immediately save €10,000, which you don't have to finance or deposit your own money.

Investing in sustainability

In 2026, the government will focus heavily on making the housing stock climate-friendly. When you buy a home and invest directly in insulation, a heat pump or HR+++ glass, there are several advantages:

• Energy savings loan: The interest on loans that are specifically taken out for sustainability is deductible under certain conditions.
• ISDE grant: You can get substantial amounts back for the installation of sustainable techniques.
• VAT exemption for solar panels: Since 2023, the VAT on solar panels for individuals has been 0%, so you no longer have to make a complicated VAT refund.

The home lump sum: The “Homeowners tax”

It's not just an advantage; as a home owner, you also have to deal with the home lump sum. The tax authorities see owning a home as a form of income (because you don't have to pay rent).

• The calculation: This is a percentage of the WOZ value of your home (usually 0.35% in 2026). This amount is added to your income, so you pay slightly more tax.
• The balance: In most cases, however, the mortgage interest deduction is much higher than the home lump sum, so you still get a substantial amount back below the line.

Hillen de wet (Phasing out)

There used to be a rule that if you (almost) ran out of mortgage, you didn't have to pay a home lump sum either. However, this “Wet Hillen” is gradually being phased out. In 2026, this means that people with a repaid home will still have to pay part of the home lump sum, although there is still a small allowance for those without debt.

Fiscal partnership

When you buy a house with a partner, you automatically become tax partners. This offers great benefits when it comes to income tax returns. After all, you can shift the deductions.

By assigning the mortgage interest deduction to the partner with the highest income, you maximize the tax refund. On an annual basis, this can provide hundreds of euros of extra advantage compared to two separate returns.

Cash flow: Make use of the preliminary assessment

The various tax benefits of owning a home are usually only deducted when the final tax return is made in the spring. As a home owner, however, it is a shame to wait a full year for this capital.

By submitting a Preliminary Assessment to the tax authorities, you can have the expected refund, in particular the mortgage interest deduction, paid out monthly. This proactive step reduces your net monthly expenses immediately, making the home considerably more affordable from day one. The Dutch real estate tax system is complex, but extremely lucrative for those who know their way around. It is therefore worthwhile to consult an advisor who looks beyond the loan and optimizes your entire tax picture.