Preliminary Assessments and Deductible Mortgage Interest on a Primary Residence
When discussing a preliminary tax assessment (“voorlopige aanslag”), it is essential to distinguish between two different types:
A) The preliminary assessment issued after filing the annual tax return
You receive this after submitting your tax return in the March–April period. It is issued before the final assessment is prepared.
B) The preliminary assessment you request proactively
This can be filed before the annual tax return, using estimated figures. Taxpayers typically request this when they expect:
- to owe a substantial amount and prefer to pay it in instalments, or
- to receive a refund and would rather receive it monthly in advance.
This article focuses on type B, as it is the source of most confusion, particularly in connection with the mortgage interest deduction on a primary residence.
How a proactive preliminary assessment works
A proactive preliminary assessment is essentially a forward-looking version of the annual tax return. For example, a preliminary assessment for 2025 can be submitted from January 2025, even though the final return for that year is filed in March–April 2026.
Because it is submitted early, it relies on estimates. At the start of the year, many financial details are not yet final. The eventual annual return replaces the preliminary figures, which means taxpayers may later see:
- additional tax due,
- an extra refund, or
- a repayment if the preliminary refund was too high.
Refunds from a preliminary assessment are usually paid monthly. When preparing one, taxpayers often include only the information that is already clear, such as:
- income from employment
- details of the primary residence
- mortgage interest and deductible costs
Elements that fluctuate or are not yet known, such as worldwide assets (box 3), secondary income, employment benefits (like a lease car or equity compensation), the 30% ruling, or smaller deductions, are typically added or their impact is known later when filing the final return. Any differences are then corrected. For this reason, preparing the preliminary assessment as accurately as possible helps avoid surprises later.
Why preliminary assessments are popular
A preliminary assessment is helpful when a significant refund or payment is expected. Instead of settling everything in one lump sum, the taxpayer can spread the amount over the year.
It is especially popular among new homeowners. Employers do not take mortgage interest deduction into account in wage tax calculations, because it is an element of income tax. As a result, many new homeowners are entitled to a tax refund. By filing a preliminary assessment, they can receive this refund monthly, which improves cash flow and reduces the monthly financial burden.
Mortgage advisors often describe this as a “monthly mortgage deduction.” While this explanation makes sense from a financial-planning perspective, the actual refund depends on the taxpayer’s entire tax position, not just employment income and mortgage interest.
Where misunderstandings can arise
Many people assume they will automatically receive a large refund in the year they buy a home. While this is frequently the case, it is not guaranteed.
Expectations often come from online sources or optimistic discussions during the mortgage process. Mortgage advisors typically have a strong understanding of the main financial elements, and many help clients submit a preliminary assessment as part of their service. This is logical, as they have detailed insight into the financing.
However, some tax-relevant information lies outside the mortgage process. This may include:
- secondary or freelance income
- worldwide savings and investments (box 3)
- employment benefits such as a lease car or stock compensation
- the 30% ruling
- personal deductions or special circumstances
If these elements are not taken into account, the preliminary assessment may produce a refund that is too high. When the final return is filed, this can result in a repayment.
Why involving a tax advisor can help
A tax advisor reviews the full tax picture and understands where inaccuracies commonly arise. When your situation includes more than employment income and a primary residence, obtaining advice before filing a preliminary assessment can help ensure the estimated figures reflect the actual expected outcome.
This prevents avoidable corrections and provides clarity throughout the year.
How Dutchtaxadvice can support you
Dutchtaxadvice can assist with:
- calculating the expected refund or tax payable
- preparing and submitting your preliminary assessment
- reviewing your full tax situation to avoid unexpected adjustments later
If you are considering a preliminary assessment or want to better understand your expected tax outcome, feel free to contact us. We are happy to think along with you so you can make a well-informed and confident decision.
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