Prepayment of mortgage loan interest
Are you paying interest on your mortgage loan without qualifying for mortgage interest relief because your property’s value for the purposes of the Valuation of Immoveable Property Act of the Netherlands (the appraised value for council tax purposes) does not allow it, or are you interested in creating a greater tax credit for inclusion in your 2017 income tax return? If you have answered either question in the affirmative, it may be lucrative for you to prepay your 2018 mortgage interest before 2017 is out.
If you are a homeowner whose home acquisition debt is so minor as to result in your mortgage interest payments turning out at less than your imputed income from homeownership, this will result in your missing out on mortgage interest relief. However, the option is available fiscally to deduct your next year’s interest prepayments as early as in the 2017 income tax year. This would be allowed for mortgage interest payments for the period up to the first of July 2018. This may well enable you to salvage at least some tax relief on your mortgage interest payments.
Do yourself a favour and contact us today!