The government supports mortgage savings in a very effective way

The government supports mortgage savings in quite an efficient manner. That way, the State makes a valuable contribution to improve the housing situation and to fight the housing shortage. In fact, each Euro the State invests into mortgage savings, leads to a much higher payment for the financing of housing by the building societies. In addition, people taking advantage of mortgage savings often move out of their rented flat as soon as they can live in their own home. For that reason the State supports mortgage savings through tax advantages within the limits defined under extra charges on your tax sheet. The fact that the contributions to the building society my be deducted as extra charges can lead to a considerable tax rebate on the wages and income tax.

Utilisation options

Once the building society contract has been allocated, the building society balance and the building society loan must be used for residential purposes:

• Construction and purchase of a flat or house,
• Remodelling or renovation of a flat or house,
• Purchase of a plot of land to build a house,
• Repayment of existing financing in connection with a flat or house.
• The flat or house must be used as the main residence.

After the tax lock-in period of 10 years has expired, the building society savings can be freely disposed of. If you do not use your building society savings balance for a residential purpose, you are no longer allowed to deduct savings contributions from your tax since 1 January 2017.

Amount of the deductible contributions since 1 January 2017: