Is interest from a secondary loan deductible per the mortgage deduction?


I am about to purchase a property in the Netherlands and as an expat am expected to provide a deposit of 10% of the purchase value. I am doing so by way of a personal loan from my bank in my home country and am hoping that the interest on this loan will also be deductible for tax purposes. Are there rules surrounding the sources of financing entitled to be deducted?


Dutch law just states that interest on a loan used to purchase or renovate the main residence is deductible. It doesn‘t say how the loan should be set up. It doesn‘t therefore have to be a mortgage. A mortgage is just a loan with the property as the guarantee. But you can also just get a personal loan from a bank, or a loan from a family member or any other person or organisation.

Just make sure that the loan is arranged for the main residence.

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