The cost of a notary when buying a property can be substantial. Regarding notary fees for buying a house, you may deduct at least the fees for the mortgage deed. Often, the costs for the transfer deed are not deductible. You can usually see on the invoice exactly which notary fees are deductible. Fortunately, (part of) these costs are deductible. You can read below which notary fees are deductible.
Notary fees and tax reduction
When acquiring real estate, such as a house, there are significant financial obligations associated with the transaction. Fortunately, certain notary fees may be eligible for tax deductions, which can help reduce the tax burden for buyers. However, it is important to stress that the rules and opportunities for tax deductions can vary greatly depending on the jurisdiction and the buyer’s specific situation.
Some of the notary fees that may be deductible in some cases include:
- Transfer tax: This is the tax levied on the transfer of property. In some countries, part of this tax may be deductible from income tax.
- Notarial fees: Fees charged by the notary for preparing the deed of purchase, title deed and other relevant legal documents.
- Mortgage-related costs: If you take out a mortgage to buy the house, some costs associated with taking out the mortgage, such as notarial fees for the mortgage deed, may be eligible for deduction.
- Brokerage fees: If a broker or intermediary is involved in the transaction, some brokerage fees may be deductible.
- Cadastral fees: In some cases, cadastral registration fees or court fees paid to the notary may be deductible.
Advise on deductible notary costs
However, it is crucial to realise that not all notary fees are automatically deductible. The specific rules can vary significantly and may depend on factors such as the purpose of the purchase (e.g. own home versus investment property), the tax status of the buyer and the relevant tax laws in the relevant country. It is highly recommended to seek professional advice from a tax advisor or legal expert familiar with local tax laws. By understanding the applicable regulations, you may be able to take advantage of legitimate deductions and thus optimise your tax liabilities when buying a house.