In the Netherlands, certain aspects around your house and your mortgage are changing in 2023: the decrease of the “Jubelton”, adjustment of the loan standard, and a further reduction of the mortgage interest deduction. Insulating your home, even for one measure, can be done by applying for a subsidy. Read this article to understand the most important changes for your house and mortgage in 2023.
Jubelton
The jubelton is a one-time tax-free donation of around €100,000. This donation knows no family requirements, and further donations will get taxed with a 10% gift tax. Therefore, it is possible to gift multiple people a jubelton. However, the donee must be between 18 and 40 years old and use the gift for the purchase, maintenance and/or debt repayment of the owner-occupied home. Next year, the donation drastically decreases from €106,671 to €27,231. Thus, if you are planning to gift, for example your children, a jubelton, now is the time to take action.
Even if you do not yet have the full amount of money available, you can already make the donation and designate it as the jubelton. In 2023 you can supplement the jubelton to contain the maximum sum of money following the 2022 regulations. Whereas it used to be possible to spread the donation over three years, this possibility is limited due to the fact that the jubelton will get completely abolished in 2024. This concludes that now is the time to donate: 2023 can be used to supplement the jubelton, and the 2022 maximum amount is still applicable.
Mortgage interest deduction
2020 marks the beginning of the rapid changes in mortgage interest deduction regulations. The endpoint of these changes is reached in the upcoming year. Next year, one can deduct a maximum of 37,05% of the mortgage interest instead of 40% in 2022. The prospect is that this will further decrease with the years, following the pattern of around -3% per year.
Transfer tax for investors
Not only the deduction of money in the jubelton, which results in the complete abolition in 2024 but also the changes in the transfer tax create a call for immediate attention. If you want to buy an investment property, which includes a second house or a vacation apartment for the rental market 2022 is the time to buy. From 2023 onwards, the transfer tax goes up from 8% to 10,4%. Since this is only applicable for investments which are not the main residence property, the transfer tax for main residence houses stays equal at 2%. Starters on the market (18-35 years) do not need to pay transfer tax when the price is under €440,000 in 2023, and under €400,000 in 2022.
Subsidy for insulation
Another aspect is the subsidy for insulation measures. This can be done from 1 January 2023 onwards and is also applicable when you have applied for a subsidy after 2 April 2022. You can apply for a subsidy for up to a maximum of one year after the measure has been implemented. Whereas the subsidy for one measure is 15%, this goes to 30% of the costs for two measures.
Broader lending standards and higher National Mortgage Guarantee (NHG) limit
Nibud calculates yearly the maximum sum of money for a responsible loan. The expectations are that the loan will be higher in 2023 than in 2022, with the condition that your income increases and the mortgage interest do not further rise. Interestingly is that dual earners will see benefits: instead of calculating solely 90% of the second income for the establishment of the loan, 2023 introduces the complete recognition of the second income. Possibly due to the inflation, as on par with the increase in 2023 loans, the NHG limit gets increased in 2023 to €405,000. An NHG mortgage has the extra security to calculate a lower mortgage interest (around -0,5 to -0,6%), and to cancel a residual debt that arises after selling a home. While this is all done under certain conditions, NHG creates a safety option to fall back due to unforeseen events such as divorce or unexpected dismissal. The limit for an NHG mortgage including energy saving measures adds €24,000 and sets the limit on €429,300.
Conclusion
Now is the time to take action. 2022 still has the option to tax-free gift a jubelton of maximally around €100,000, and 2023 can be used to fill the jubelton to still utilized the 2022 regulations. This is ideal to support your beloved ones before the jubelton gets completely abolished in 2024. In the same light, property investors can save up to 2,4% transfer tax when purchasing a (second) house in 2022. Moreover, the loan and the NHG limit will increase in 2023, and the mortgage interest deduction will decrease by around 3% to 37,05%.
Sources
https://www.ahfinance.nl/wanneer-nhg-verstandig/
https://www.amysiemons.nl/wat-is-de-jubelton-regeling
https://www.rijksoverheid.nl/onderwerpen/belastingplan/vermogen-en-wonen/overdrachtsbelasting
https://www.wegwijs.nl/artikel/2022/11/huis-en-hypotheek-dit-verandert-per-2023