If you take out a loan (or have taken out after 2013) to improve your owner-occupied home with a renovation, the interest costs of that loan are tax deductible (from your taxable income). A condition for this is that the loan must be repaid with a fixed monthly amount and within a maximum term of 30 years. Only a personal loan meets this requirement; with a revolving credit you do not receive a tax benefit.
The interest costs of the maintenance or renovation are deductible; the costs you actually incur. These are for your own account and are paid with a loan or mortgage.
Which improvements to and to your home are eligible for tax interest deduction:
- Installing a new kitchen and / or bathroom
- Laying a new floor (on every floor)
- An extension or extension for extra space
- Dormer windows and / or new window frames; increase in daylight and increases insulation
- Construction or renovation of a new garden
- Installing solar panels for energy saving
- Major maintenance to the home so that the value of your home does not decrease
If you have any questions about the deductibility of your interest costs, you can go to the website of the tax authorities. A tax consultant can help you further.
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