Mortgage Interest Deduction Calculator (Hypotheekrenteaftrek) 2025
Calculate your Dutch mortgage interest deduction as an expat. Understand hypotheekrenteaftrek, the 2025 rates, conditions, and how it interacts with the 30% ruling.
Calculate your mortgage interest deduction
The mortgage interest deduction (hypotheekrenteaftrek) is one of the biggest financial benefits of buying a home in the Netherlands. It allows you to deduct the interest you pay on your mortgage from your taxable income, reducing the amount of income tax you owe.
Use the calculator below to see how much you could save:
Mortgage Interest Deduction Calculator
Calculate your tax benefit in 2025
Calculation
Note:This is an estimate for 2025. The actual benefit depends on your personal situation and tax bracket. With an annuity mortgage the benefit decreases annually because you pay less interest. Consult a mortgage advisor for exact calculations.
How mortgage interest deduction works
The concept is straightforward: every month you pay mortgage interest to your bank. When you file your annual tax return (belastingaangifte), you can deduct this interest from your taxable income in Box 1. The result is that you pay less income tax, effectively making your mortgage cheaper.
Here is a simplified example: if you pay EUR 10,000 in mortgage interest per year and the deduction rate is 37.48%, you save EUR 3,748 in taxes. That is roughly EUR 312 per month less in net mortgage costs.
Deduction rates in 2025
In 2025, mortgage interest is deductible at a maximum rate of 37.48%. This rate applies to everyone, regardless of income level. The gradual reduction of the deduction rate that started in 2014 has been completed, and the rate has actually increased slightly due to tax bracket indexation.
| Year | Maximum deduction rate |
|---|---|
| 2023 | 36.93% |
| 2024 | 36.97% |
| 2025 | 37.48% |
| 2026 | 37.56% |
If your taxable income falls in the higher tax bracket (above EUR 76,817 in 2025), you still deduct at 37.48% rather than the higher bracket rate of 49.50%. This cap has been in place since the deduction reform.
Conditions you need to meet
Not every mortgage qualifies for the interest deduction. You must meet these requirements:
- Repayment obligation: Your mortgage must be an annuity or linear mortgage that is fully repaid within 30 years. Interest-only mortgages taken out after January 1, 2013 do not qualify.
- Primary residence: The property must be your hoofdverblijf (primary residence). Investment properties or second homes do not qualify.
- Maximum 30 years: You can claim the deduction for a maximum of 30 years per property.
If you refinance your mortgage or move to a new home, your existing deduction right transfers to the new situation, as long as you continue to meet the conditions.
The eigenwoningforfait: an important offset
There is a catch that many expats are not aware of: the eigenwoningforfait (imputed rental value). This is an amount added to your taxable income based on the WOZ value (government-assessed property value) of your home. It partially offsets the benefit of the mortgage interest deduction.
2025 eigenwoningforfait rates:
- Property value EUR 75,000 to EUR 1,330,000: 0.35% of the WOZ value
- Property value above EUR 1,330,000: EUR 4,655 plus 2.35% of the amount above EUR 1,330,000
Example: If your home has a WOZ value of EUR 400,000, the eigenwoningforfait is EUR 400,000 x 0.35% = EUR 1,400. This EUR 1,400 is added to your income, reducing the net benefit of your mortgage interest deduction.
Your actual tax benefit is calculated as: (mortgage interest paid - eigenwoningforfait) x 37.48%.
Sample calculation for 2025
Here is a practical example showing how the numbers work out:
| Factor | Starter expat | Senior expat |
|---|---|---|
| Gross annual income | EUR 55,000 | EUR 95,000 |
| Mortgage amount | EUR 300,000 | EUR 450,000 |
| Annual mortgage interest (4%) | EUR 12,000 | EUR 18,000 |
| WOZ value | EUR 350,000 | EUR 550,000 |
| Eigenwoningforfait (0.35%) | EUR 1,225 | EUR 1,925 |
| Deductible amount | EUR 10,775 | EUR 16,075 |
| Tax saving (37.48%) | EUR 4,038 | EUR 6,025 |
| Monthly net benefit | EUR 337 | EUR 502 |
These savings can make a real difference in your monthly budget. The mortgage interest deduction effectively reduces your net monthly mortgage costs by several hundred euros.
Mortgage interest deduction and the 30% ruling
This is where things get interesting for expats. The 30% ruling and the mortgage interest deduction are two separate tax benefits, and yes, you can have both at the same time.
However, there is an important interaction to understand:
While you have the 30% ruling: 30% of your gross salary is tax-free. This means your taxable income is lower, which affects how the mortgage interest deduction works in practice. Since the deduction rate is a flat 37.48%, the actual mechanism is not affected - you deduct at the same rate. But because your taxable income is already lower, the relative impact of the deduction on your total tax bill can feel smaller.
When the 30% ruling expires: Your taxable income increases significantly (since the full salary is now taxed). The mortgage interest deduction becomes relatively more valuable because you are paying more tax overall. Many expats notice a jump in their tax bill when the 30% ruling ends, and the mortgage interest deduction helps soften this blow.
Planning tip: If you know your 30% ruling will expire in a few years, factor this into your mortgage planning. Your net housing costs will increase when it ends, but the mortgage interest deduction will partially compensate. A good mortgage advisor can model both scenarios for you.
How to claim the deduction
You claim the mortgage interest deduction through your annual tax return (aangifte inkomstenbelasting), which you file with the Belastingdienst (Dutch tax authority). The process is as follows:
- Receive your annual mortgage statement (jaaropgave) from your bank, showing total interest paid
- File your tax return via the Belastingdienst website (usually between March and May)
- Enter your mortgage details in the "eigen woning" (own home) section
- The system calculates your deduction automatically based on the interest paid and eigenwoningforfait
You can also apply for a provisional refund (voorlopige teruggaaf) to receive the tax benefit monthly instead of waiting for your annual tax return. This effectively lowers your monthly costs throughout the year. You can set this up through the Belastingdienst website under "voorlopige aanslag."
Deduction when you leave the Netherlands
If you leave the Netherlands, you lose the mortgage interest deduction on Dutch property unless you qualify as a "qualifying non-resident taxpayer" (kwalificerende buitenlandse belastingplichtige). This requires that at least 90% of your worldwide income is taxed in the Netherlands.
If you sell your Dutch home and buy abroad, there is no mortgage interest deduction available. If you keep the Dutch property and rent it out, it moves from Box 1 to Box 3 (savings and investments), and the interest deduction no longer applies.
The future of mortgage interest deduction
The major reforms to the mortgage interest deduction are complete. The gradual reduction that started in 2014 reached its target, and the rate has stabilized around 37.5%. There are currently no government plans to further reduce or abolish the deduction.
For the Wet Hillen (relevant for homeowners with no or very low mortgage debt): this is being phased out gradually, with full elimination expected by 2041. This mainly affects people who have paid off their mortgage entirely.
As an expat buying a home now, you can count on the mortgage interest deduction being available for the foreseeable future. It remains one of the key financial advantages of homeownership in the Netherlands.