30 years after closing your mortgage, you have lost your right to deduct the interest of your mortgage from the income tax.
The 30-year period came into effect from the 1st of January in 2001. Did you already have a mortgage on the 31st of December 2000? Then the years before do not count and the 30-year period starts on the 1st of January 2001. In 2031 many people in the Netherlands will lose their right to deduct the interest of their mortgage. This might also happen to you. If you have not paid back any amount during your fixed period and are not planning on repaying the full balance when your mortgage reaches maturity, then your monthly payments will increase significantly.
The interest is deductible when your mortgage is used to finance your own house. You are able to deduct your paid interest in your income box 1. Keep in mind that the government utilizes a progressive system to determine the maximum deductible amount, which will decrease over time. This will occur in steps of 0.5% per year. Thus, in 2015 the maximum deductible percentage was 51%, where it will be decreased to 38% in 2041. This will specifically impact taxpayers that deduct interest and belong to income bracket 2. In 2021 the income bracket 2 accounts for incomes from €68,507.
Did you close a new mortgage for your own house or increased an existing mortgage for a renovation, for example, after 2001? Generally, your right to deduct the interest of your mortgage will be effective for a period of 30 years.
Did you take out an extra mortgage in order to finance a new kitchen in 2006, for example? Then you have a right to deduct the interest of your mortgage until 2036.
After the 30-year period, your mortgage debt will no longer belong to box 1 of your income tax but to box 3. This means that your mortgage’s interest can not be deducted from your income of work and living. This can result in not receiving any deductible from the tax authority.
The 30-year period is a tax regulation from the Dutch government. Therefore, it is not affiliated with the mortgage period agreed upon with your bank.