Add mortgage interest deduction in NettoWise

If you own a home, you can often deduct interest on a mortgage or loan in box 1. In NettoWise you record this interest so the effect is included directly in your net income.

Add mortgage interest in the portal

1. Go to Portal -> Data -> House.
2. Click Add mortgage interest.
3. Fill in the details and save.

Field explanations

You will see three main fields in the form:

• Name: a clear name for your loan or property.
• Interest charges: the amount of interest you paid in the year.
• WOZ value: the assessed property value.

When mortgage interest is deductible

According to the Dutch Tax Administration this depends on your situation. Key points:

• The loan must be used to buy, renovate, or maintain your own home, or to buy off leasehold.
• For loans taken out or increased on or after 1 January 2013, you must repay at least annuity or linear within 30 years.
• Even if you do not yet live in the home, interest may be temporarily deductible, for example with new construction or a home that is empty and for sale.
• If you receive a refund of interest you previously deducted, you need to offset it in your tax return.

What NettoWise does with it

NettoWise processes the interest charges as a box 1 deduction and applies it in your salary calculation. This gives a more realistic view of your net income over the year.

What happens when you change, add, or remove

When you update the data or add a new mortgage, NettoWise recalculates the annual deduction and spreads it across the periods of the year. You will see the impact immediately in the remaining months.

• New mortgage: a new yearly deduction is added and distributed per period.
• Change (for example extra repayment or new interest amount): the deduction is recalculated and redistributed.
• Delete: the deduction is removed from your calculation.

Source and further reading

Read the full guidance from the Dutch Tax Administration: Mag ik mijn hypotheekrente altijd aftrekken?.