Debit interest on mortgages

Debit interest for an owner-occupied home:

• During the period when the property being built or renovated is not occupied: fully deductible
• After this period: tax deduction capped according to the number of members of the owner’s household for tax purposes and the occupancy start date

Debit interest for a property rented out: fully deductible

Income-related expenses

Charges and commissions related to the loan (e.g. loan registration and notary fees attached to opening a credit line): fully deductible provided that you do not occupy your home at the time of paying these costs. Notarial deed fees related to the purchase of the property: not deductible

Mortgage protection insurance premiums

• Regular premiums: tax allowance of EUR 672 per year and per person within the household for tax purposes
• Single premium: the single premium is only deductible for the year in which the premium is paid, but it may be subject to an increased limit or higher increased limit that varies depending on your age, tax class and family situation.

Single premium increased ceiling

	Up to 30 years old	31 - 49 years old (*)	Over 50 years old (**)
Taxpayer	EUR 6,000	+ EUR 480/year	+ 9.600€
Jointly taxed couples	EUR 6,000	+ EUR 480/year	+ EUR 9,600
Allowance per dependent child	EUR 1,200	+ EUR 96/year	+ EUR 1,920

(*) For taxpayers aged 31 and over, the increased limit for a single premium is 8% x number of years over 30 at the time the insurance policy is taken out.
(**) For taxpayers aged 50 and over, the increased limit for a single premium is capped at EUR 9,600. BIL relationship managers will gladly provide information regarding possible tax deductions.

What government incentives are available for a mortgage?