The government supports mortgage savings in a very effective way
The government supports mortgage savings in quite an efficient manner. That way, the State makes a valuable contribution to improve the housing situation and to fight the housing shortage. In fact, each Euro the State invests into mortgage savings, leads to a much higher payment for the financing of housing by the building societies. In addition, people taking advantage of mortgage savings often move out of their rented flat as soon as they can live in their own home.
For that reason the State supports mortgage savings through tax advantages within the limits defined under extra charges on your tax sheet. The fact that the contributions to the building society my be deducted as extra charges can lead to a considerable tax rebate on the wages and income tax.
Amount of the deductible contributions to the building society
In addition to the amounts paid to insurance companies or to mutual benefit insurance systems, which are deductible anyway, the following sums can be deducted per annum:
|Singles||672 Euros||Family with 2 child||2.688 Euros|
|Married couples without children||1.344 Euros||Family with 3 child||3.360 Euros|
|Family with one child||2.016 Euros||Family with 4 child||4.032 Euros|
672 € can be credited for each further child. The children taken into consideration are those who are considered to establish the taxpayer’s tax group.