Owner-occupied home

Property Transfer Tax (from 2026)

In 2026, under certain conditions, a property transfer tax rate of 2% applies when transferring a home that the buyer will use as their main residence. For properties not used as the main residence, the rate has decreased from 10.4% in 2025 to 8% from 2026. For other types of real estate, the tax remains at 10.4%, unchanged from 2025. The first-time buyers’ exemption applies to young people aged between 18 and 35 years who purchase a home to live in permanently, limited to properties with a maximum value of €555,000 (2026).

Mortgage Interest and Repayment Conditions

Interest on an owner-occupied home loan is only deductible if the loan is fully repaid, at least through annuity payments, within a maximum of 30 years. Repayment obligations must be explicitly defined and adhered to in the loan agreement. Since 2014, the maximum mortgage interest deduction has decreased annually. In 2026, interest previously deductible at the highest tax bracket (49.5%) is limited to 37.56%.

Additional Mortgage Repayments

Repaying your mortgage has various tax and financial implications:

After repayment, you will no longer have mortgage interest or be able to deduct it in Box 1.
You may incur a penalty interest charge for additional repayments.
You may save tax in Box 3 due to using savings for repayment.
From 2026 onwards, the deduction related to the notional imputed rental income will decrease by 4.8% each year and cease entirely from 2041.

Energy Efficiency Loans and VAT Incentives

Through the National Heat Fund, you can obtain a loan at an attractive interest rate to improve your home's energy efficiency. The VAT rate on solar panels installed from 1 January 2023 is 0%. However, from 1 January 2027, the net metering scheme for solar panels will be abolished. Homes older than two years qualify for a reduced VAT rate of 9% on painting, plastering, and insulation work, applying only to privately occupied homes from July 2025 onwards.

More information

For more information about this subject, you can read the advisory handbook.

Open handbook

Published on 21 January 2026

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