As an entrepreneur, the same costs can be deducted in the annual personal income tax return for real estate purchases as if one were an employee.
Deductible costs in the year of purchase
Nationale Hypotheek Garantie (NHG) fee: This fee provides a guarantee for the loan.
Notary fees: Any costs related to obtaining the loan.
Appraisal fees: The cost of the property appraisal.
Certified translator fees: If official translations are required.
Real estate agent fee (makelaar): Can only be deducted if the work fee is aimed at obtaining the loan.
Accounting fees: If the documents prepared by the accountants are necessary for obtaining the loan.
Annually deductible costs
Interest paid (hypotheek rente): The mortgage interest paid in the given year.
Renovation costs: It is often questioned whether the costs of renovating the purchased house can be deducted as company expenses and if the VAT can be reclaimed. Unfortunately, building materials purchased for a private house (windows, flooring, heating system, etc.) cannot be deducted as company expenses, and the VAT cannot be reclaimed.
For construction businesses: If one has a business related to construction, the purchase of various machines and tools can be deducted, and the VAT can be reclaimed.
Separate room with sanitary facilities: If someone creates a separate room with sanitary facilities in their house, the costs can be deducted as office space, and the VAT can be reclaimed.
Creating office space: If an office space is created in a house, the costs can also be deducted.