Are estate agent fees tax deductible? Buying and selling explained

The Belastingdienst distinguishes between costs of buying the home and costs of obtaining the loan. Only the latter, financing costs, are deductible in the year you pay them. The buying agent's fee belongs to the purchase and is explicitly listed as not deductible. The same goes for transfer tax, the notary fee for the transfer deed, a structural survey for the purchase itself and advice costs before the purchase. See our buyer's costs calculator.

• advice and brokerage costs for the mortgage;
• valuation costs for obtaining the mortgage;
• notary costs for the mortgage deed;
• National Mortgage Guarantee (NHG) costs;
• a structural survey if required for the mortgage or NHG.

The notary drafts two deeds: the mortgage deed is deductible, the transfer deed is not. The deduction rate for owner-occupied homes is capped by law, so you never get the full amount back.

If you borrow the agent fees as part of your mortgage, that part of the debt falls in box 1 as owner-occupied home debt according to the Belastingdienst. The interest on it can then be deductible, provided the mortgage meets the usual conditions such as at least annuity or linear repayment within 30 years. In practice most lenders lend up to 100% of the home value, so buyer's costs are often paid from savings.

Your selling agent's commission is not deductible from income. But selling costs do matter for the bijleenregeling (additional borrowing rule). If you sell at a profit and buy again, you must in principle put the equity into the new home, or interest on that part of the new mortgage is not deductible.

The Belastingdienst calculates equity as sale price minus owner-occupied home debt and selling costs, with examples such as agent fees, the energy label, valuation and advertising costs. Higher selling costs mean lower equity. Equity not directly put into a new home is the eigenwoningreserve, which expires after three years. Keep your agent's invoice.

For private individuals a rented home usually falls in box 3, where no separate costs are deducted. Different rules apply to entrepreneurs or a BV; consult a tax adviser. See also selling a rented property.

Since you cannot deduct them, compare fees in advance. See estate agent fees for common rates. A buying agent indicatively costs about €2,500 to €5,000 or 1 to 1.5% of the price.