Can I deduct the debt interest if I financed the property externally?
You can deduct any interest on debt as income-related expenses if the loan in question is used to finance acquisition or production costs as well as maintenance expenses, etc., for a rented property. You can also deduct other financing costs related to your rented property. These include, for example:
- Registration of a mortgage
- Loan interest before the completion of the property
- Fees and commissions to the bank
- Fees for the notary or land registry office
You can declare the costs in the year in which they were paid in the tax return. You cannot deduct the repayment instalments of your mortgage or loan.
