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Are property valuation costs deductible?

In the Netherlands, certain costs are deductible from taxes. You can save a lot of money by knowing the items which are deductible in the Netherlands. However, which costs are deductible when buying a house?

In the Netherlands, certain costs are deductible from taxes. You can save a lot of money by knowing the items which are deductible in the Netherlands. However, which costs are deductible when buying a house?

What are valuation costs?

When you want to buy a house and take out a mortgage for it, the mortgage lender will require an independent appraisal report. So just having the house value calculated is not enough. An estate agent can calculate the house value for you; this is often a reliable value to determine the actual purchase price within a reasonable margin. An appraisal report is a more factual calculation of the value a house represents.

This report must be prepared by an appraiser. And there are specific costs involved in having an appraisal report drawn up for a property valuation.

When are property valuation costs deductible?

As with mortgage interest, you can also deduct valuation costs from your income tax. You can deduct these costs from the base income tax. This means lower income tax. Other costs are deductible, which is bundled into the cost of taking out the mortgage. This is a one-off deduction consisting of:

  • The valuation fee
  • Advice and mediation by the mortgage advisor
  • The preparation fee
  • Notarial costs for drawing up the mortgage deed
  • Land registry costs for the mortgage deed
  • Application costs for applying for the NHG
  • The penalty interest
  • Construction interest between signing the provisional sales contract and the mortgage deed
  • Costs for a new-build deposit, renovation loan or conversion deposit

There are quite a few separate costs you have to incur when buying a property. Fortunately, the selling party will also want to help determine whether these costs are deductible. It is wise to make a list of these costs and compare them among yourself. The costs will vary depending on your specific situation and the mortgage you will have to pay.

Which costs are not deductible?

Some expenses that are not tax deductible are:

  • Sales tax
  • Transfer tax
  • Estate agent's commission
  • Maintenance and renovation costs
  • Owner-occupied home repayment
  • Bank guarantee costs for paying a deposit
Incidentally, this does not mean that the above costs cannot be beneficial. For instance, a real estate agent's commission can be recouped. When buying a house, negotiations can make a difference, most professionals involved in home buying are finding different professional perspectives.So there are more benefits to be gained than just tax deductions.

What are the conditions for deductible expenses on a property?

The main condition for the above deductions is that these expenses can be claimed back once in the year they are incurred. So be on time, if you are not sure about the possibilities or the date, contact your financial advisor or discuss it with the estate agent. Otherwise, you could be missing out on quite a bit of money.

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