In the Netherlands, homeowners may be eligible for tax benefits on mortgage interest if they meet certain requirements. Each year, the interest paid on a residential mortgage can be deducted from taxable income—a benefit known as the “hypotheekrenteaftrek”, or mortgage interest deduction.

The way the deduction is received depends on the individual’s preference: it can be claimed monthly or annually through the tax return, effectively reducing taxable income throughout the year or as a single annual adjustment.

For example, if your mortgage interest amounts to €18,000 per year and you are eligible for the full deduction, you can expect to receive approximately €6,600 per year back. The mortgage interest deduction is considered one of the key benefits of owning a home versus renting in the Netherlands.