Can I get mortgage relief in my tax return?

You can only claim tax relief on mortgages (also known as mortgage loans) for homes purchased before 1 January 2013. Mortgages for property purchased after that date are not tax-deductible, but should still be included in your tax return.

Tax relief for the main residence

The mortgage loan is tax deductible if the property in question is your main residence. If the mortgage is for a second home, it is not eligible for tax relief. Nor is it eligible if the property is rented out to third parties.

So what is considered to be a main residence? According to the Tax Authorities, it is one in which the taxpayer resides for a continuous period of at least three years. The main residence is also considered to be one in which the taxpayer resides for a period of twelve months from the date of its acquisition or from the date of the completion of the works.

Mortgage tax relief 

A mortgage is tax-deductible if the amount is used entirely for the purchase of the property. In many cases, in addition to the money for the property, the bank may also provide an amount for renovations, the purchase of furniture, etc. In this case, the mortgage loan would only be eligible for relief on the amount paid for the purchase of the home.

Also, for the mortgage to be deductible in the tax return it must be for a fixed asset and not for a movable asset. Fixed assets are those that cannot be moved, for example a house, a building or a piece of land. Movable assets, on the other hand, are those that are mobile, such as vehicles or mobile homes. In such cases, mortgage loans would not qualify for tax relief.

Those who meet these requirements may deduct a maximum of 7.5% of the amounts paid during the financial year in their tax returns, with a ceiling of 9,040 euros per year.