Deduction for your own and only house
If you have a mortgage to acquire a house, you can deduct the repayments from your net income. Usually reference is made to your own and only house. We provide you hereafter the details for this arrangement.
These rules are applicable for mortgages as from 1 January 2005. It concerns mortgages to acquire, keep, build or renovate a house. Each tax payer has the right to this deduction 'for his own and only house' amounting to 1.500€ (indexed amount for this tax year: 2.120€). During the first ten years this amount is increased with 500€ (indexed amount for 2012: 710€).
Conditions relating to the mortgage
it should concern a mortgage with an institution in the European Economic Area (European Union + Norway, Liechtenstein and Iceland);
the mortgage has a minimum duration of 10 years.
It should concern your own house
In other words, you should be the owner, possessor or holder of a real right on the house (long lease, building and plantings rights, usufruct).
It is your only house
You cannot own another house. When judging this criterion, the following situations are not taken into consideration:
a house you acquire through heritage as co-owner, bare owner or usufructor. This exception is strictly applied: if you are the sole owner of another house, this is taken into consideration. Furthermore this exception only applies for houses you acquire through heritage, bare or full ownership obtained in another way (e.g. as a gift) is taken into consideration.
another house which you own, but which is put up for sale on the 31 December of that year and is effectively sold one year later.
You should live in the concerned house
You should actually live in the concerned house on 31 December of the year in which the mortgage was entered into (this means the year in which the notarial deed was passed). Also in this case there are some exceptions for specific cases:
if you cannot live in the house due to contractual or legal constraints;
if the condition of the building works does not allow you to live in the house.
You have time until the second year following the year of the mortgage to actually move into the house.
When is the situation assessed?
The fulfillment of all conditions is assessed on 31 December of the year the mortgage was entered into. At that time, a 'picture' is taken of the situation: if you comply with all conditions at that time, you have right to the base amount of the deduction (for the increased amount, additional conditions apply). So also in case you don't occupy the house later, you obtain another house or if it is no longer your own house.