Hypotheekrenteaftrek (HRA)
Definition
The mortgage interest deduction allowing homeowners to deduct interest paid on a primary residence mortgage from Box 1 income.
Key Takeaways
- Hypotheekrenteaftrek (HRA) allows Dutch homeowners to deduct primary mortgage interest from Box 1 taxes.
- Only applies to linear or annuity mortgages with a maximum 30-year amortization schedule.
- The maximum interest deduction rate is capped at 37.56% for the 2026 tax year.
- Slightly offset by the eigenwoningforfait, a notional income tax added for owning property.
Detailed Explanation
Hypotheekrenteaftrek (HRA) is the Dutch mortgage interest deduction. It allows homeowners to deduct the interest paid on their primary home loan from their Box 1 taxable income, providing significant tax relief. The HRA was designed to make home ownership more affordable for Dutch residents.
To qualify for the HRA, the mortgage must be an annuity or linear loan that is fully amortized over a maximum of 30 years. The deduction rate is capped, and for the 2026 tax year, the maximum deduction rate is set at 37.56%. Additionally, homeowners must add a notional rental income (eigenwoningforfait, set at 0.35% of the property's WOZ value) to their Box 1 income, which slightly offsets the HRA benefit.