Conditions and possibilities of tax benefits
In some cases, the Tax and Customs Administration offers options to deduct the interest on the loan for tax purposes or there are other additional benefits of a loan.
Interest deduction of the loan in box 1
In box 1 you pay tax on income from work and home. There are various deductible items in box 1 . For personal loans, you may deduct the interest if you use the loan for the owner-occupied home. The interest on a personal loan is therefore only deductible in box 1 if you use the loan for the purchase of a first home, a renovation or maintenance of your owner-occupied home. If you use the personal loan for a car or camper , the loan is not tax deductible.
Please note: a Revolving Credit is not deductible in box 1.
Overview of interest deduction Personal Loan per loan purpose
| Spending purpose|| Interest deductible|
| Car, boat, camper / caravan, motorcycle|| No|
| Home improvement, remodeling|| Yes|
| 2nd house, recreation house|| No|
| (Additional) costs of the house (costs of the buyer)|| Yes|
| Landscaping garden|| Yes|
| Sustainability (solar panels, heat pump, insulation, etc.)|| Yes|
| Extra financial space|| No|
| Study|| No|
Tax benefit loan in box 3
In box 3 you pay tax on your equity such as savings, shares or a second home. When you take out a loan, you have an outstanding debt, so you may in some cases partially deduct the amount of the outstanding loan from your assets. This way you will have to pay less tax in box 3.
The loans must add up to more than € 3,000 (or € 6,000 if you have a tax partner). You may only deduct the portion of the loan above this amount. For example: You and your partner have a personal loan of € 19,000, you can deduct € 19,000 - € 6,000 = € 13,000.
Not all loans are deductible in box 3 . Only loans that have nothing to do with your first owner-occupied home are included in box 3 and you may deduct them from equity. These are for example: