Mortgage interest deductability and homeownership in the Netherlands

This paper considers the growing amount of paid mortgage interest in the Netherlands against the background of its full fiscal deductibility, increasing homeownership rates, innovation in themortgage market and changes in the Dutch income tax system. Its main conclusions are that arguments in favor of fiscal deductibility are weak. Since the deductibility puts pressure on the income tax base, it is likely that sooner or later the facility must be limited or abandoned.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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