![\"\"](\"https:\/\/vwg.nl\/wp-content\/uploads\/20171113_Hillenaftrek-1024x384.jpg\")
<\/p>\n<\/p>\n
The government has submitted a bill to phase out the deduction due to no or low owner-occupied housing debt, also known as the Hillen deduction. This measure is to take effect from 1 January 2019.<\/p>\n
If you pay little or no mortgage interest because you have a small or even no owner-occupied home debt, you are entitled to a deduction for no or small owner-occupied home debt. This deduction is calculated on the difference between the owner-occupied home lump sum and the deductible costs of your own home, such as mortgage interest. Because of this deduction, you do not pay tax on the owner-occupied home lump sum. This is because the benefit from the owner-occupied home is zero.<\/p>\n
This scheme was devised at the time, by MP Hillen, to motivate homeowners to repay their owner-occupied housing debt as soon as possible. Due to the repayment obligation, applicable as of 2013, the Hillen deduction has become a redundant scheme, according to the Cabinet.<\/p>\n
If you own your own home with a WOZ value of \u20ac300,000, then the owner-occupied home lump sum is \u20ac2,250. Suppose your owner-occupied home debt is \u20ac60,000 and the applicable interest rate is 3. Then the deductible mortgage interest is \u20ac1,800. The difference between the owner-occupied home lump sum and the mortgage interest is \u20ac450. This \u20ac450 is currently fully exempt under the Hillen Act. As a result, the benefit from own home is \u20ac0 and no tax is charged on it.<\/p>\n
From 1 January 2019, the new government plans to phase out the Hillen deduction, so that eventually there will be no deduction no or little owner-occupied housing debt. For 30 years, the deduction will be limited by 3 1\/3% per year. For 2019, this means that you are allowed 96 2\/3% of the difference between the owner-occupied property tax credit and deductible owner-occupied property expenses. In 2020, you are allowed to deduct 93 1\/3% and so the percentage is reduced each year. In 2048, the deductible amount will be 0%. In other words, then the entire owner-occupied home balance will be taxed again.<\/p>\n
The above example then gives the following result:<\/p>\n
The owner-occupied housing lump sum remains \u20ac2,250 (the Cabinet also has plans for a limited reduction of the owner-occupied housing lump sum). Mortgage interest remains \u20ac1,800. However, only 96 2\/3% of the difference of \u20ac450 is now deductible, which amounts to \u20ac435. The taxed benefit from own home is \u20ac 15<\/strong>.<\/p>\n Assume that, in line with the purpose of the Hillen deduction, you have fully repaid your owner-occupied home debt. Then the tax will be calculated on \u20ac2,250 x 96 2\/3% = \u20ac75. And this amount will increase over the next few years until the full owner-occupied home lump sum is taxed.<\/p>\n The bill has not yet been accepted by Parliament, so the law is not final. So there is still a chance that this change in the law may not pass.<\/p>","protected":false},"excerpt":{"rendered":" Het kabinet heeft een wetsvoorstel ingediend om de aftrek wegens geen of geringe eigen woningschuld, ook wel de Hillenaftrek genoemd, af te bouwen. Deze maatregel moet per 1 januari 2019 in werking treden. Hillenaftrek Wanneer je weinig of geen hypotheekrente betaalt, omdat je een geringe of zelfs geen eigenwoningschuld hebt, heb je recht op een […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-563","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=563"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/563\/revisions"}],"predecessor-version":[{"id":2576,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/563\/revisions\/2576"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}