Navigating the Dutch property market is a major achievement for any expat. You’ve likely heard the term hypotheekrenteaftrek—the mortgage interest deduction. This valuable tax benefit makes homeownership more affordable.

But there’s a big change on the horizon.

A key deadline is approaching in 2031. For many homeowners, this popular tax deduction will disappear completely. This will lead to higher monthly housing costs.

At ExpatEstate, we want you to be prepared. This guide breaks down what is happening, who it affects, and what you need to do right now.

What Is the Mortgage Interest Deduction (Hypotheekrenteaftrek)?

Let’s start with the basics. The hypotheekrenteaftrek (HRA) is a Dutch tax rule. It allows you to deduct the interest you pay on your mortgage from your taxable income.

Here’s how it works:

• You pay interest on your mortgage loan each month.
• You subtract this total annual interest from your gross income.
• This lowers your taxable income, meaning you pay less income tax.

Essentially, the government gives you a refund on a portion of your mortgage interest. This system was designed to encourage people to buy homes.

The 30-Year Rule for Hypotheekrenteaftrek: A Ticking Clock

For years, the government has been limiting the HRA. In 2001, they introduced a major rule: you can only claim the mortgage interest deduction for a maximum of 30 years.

This didn’t cause much of a stir at the time. But now, the end of that first 30-year period is fast approaching.

Why 2031 Is the Critical Year

So, why is everyone talking about 2031?

For anyone who already had a mortgage on December 31, 2000, the 30-year countdown started on January 1, 2001.

January 1, 2001 + 30 years = January 1, 2031.

This means that a large group of homeowners will lose their right to the deduction on this date. Their monthly costs will rise significantly because the tax refund will stop.

Who Does the 2031 Deadline Affect Your Hypotheekrenteaftrek?

This rule change does not affect every homeowner. You are most likely affected if:

• You had a mortgage on your home before January 1, 2001.
• Your mortgage is (partially) interest-only (aflossingsvrije).

These older, interest-only mortgages were very popular. With them, you only pay interest each month and don’t repay the principal loan. The 2031 deadline hits this group the hardest, as they will still be paying full interest without any tax relief.

Bought Your Home After 2013? You Can Likely Relax

If you are a more recent homebuyer, you probably don’t need to worry about the 2031 deadline.

Since January 1, 2013, new mortgages must be either annuity (annuïteiten) or linear (lineair) to qualify for the HRA. Both mortgage types require you to repay the loan in full over 30 years.

After 30 years, your mortgage is paid off. You no longer pay interest, so there is no interest to deduct. The HRA naturally phases out for you.

What Happens When the Deduction Stops?

Losing your HRA has a direct impact on your wallet. Your net monthly housing costs will increase. The tax refund you previously received will disappear, but your mortgage payment to the bank will stay the same.

This is a significant financial change that you need to plan for.

Your Responsibility: Check Your Own Records

Here is a crucial point. The Dutch Tax Authority (Belastingdienst) only started tracking detailed mortgage data in 2013. They do not have complete records for mortgages taken out before then.

This means you are responsible for knowing when your 30-year period ends. You must stop claiming the deduction yourself when the time comes. Many people don’t have paperwork from 20+ years ago, creating a confusing and risky situation.

What Should You Do Now?

Don’t wait until 2030 to figure this out. Take action today to understand your financial future.

1. Find Your Mortgage Agreement: Look for the original start date of your loan. This is the most important piece of information. If you refinanced or moved, the rules can get complex.
2. Consult a Mortgage Advisor: This is the best way to get clarity. A professional advisor can review your specific situation, calculate exactly when your deduction ends, and help you create a financial plan. They can explore options like refinancing or restructuring your mortgage to prevent a future payment shock.

The Bottom Line

The hypotheekrenteaftrek is a fantastic benefit, but its clock is ticking for many homeowners. The 2031 deadline is not just a distant concept; it’s a real financial event that requires your attention now.

By understanding your mortgage and seeking professional advice, you can navigate this change with confidence and secure your financial stability in your Dutch home.