A Dutch nieuwbouwdepot or bouwdepot holds the construction portion of a home mortgage while the builder invoices work in stages. The borrower pays mortgage interest on the relevant loan and usually receives deposit interest on the unused depot balance. For an owner-occupied new build, Belastingdienst says the depot interest received is offset against interest paid when calculating deductible net interest during the first two years under its rules.
A €400,000 staged draw example
Sanne has a €400,000 mortgage financing construction. Suppose €100,000 is released for invoices during the first quarter and €300,000 remains in the depot. If loan interest is 4% annually and the depot pays 3.5% annually on its unused balance, a simplified one-year snapshot gives €16,000 loan interest minus €10,500 deposit interest = €5,500 net interest before other tax rules. The actual deductible amount depends on dates, each drawdown, qualifying owner-occupied loan and tax circumstances. The rate on a depot need not equal the loan rate, so “you effectively pay interest only on amounts already deployed” is not universally true.
The tax clock starts before the loan in some cases
Belastingdienst says the two-year period generally starts on the date of signing the purchase or construction contract. If there is no loan then, relevant interest deduction starts when the loan is signed at the notary, but the two-year tax rule is not simply “two years from mortgage start” in every case. After the first two years, the tax treatment of unused depot funds and loan interest changes. It is not accurate to say the remaining depot balance automatically converts into mortgage principal at the two-year date; the bank's contract separately governs the account.
Check project and account terms
Sanne should match each builder invoice to the draw, keep loan and depot interest statements, and confirm the two-year starting date. A major renovation deposit can have related but distinct rules. The prior claim that “15% of Dutch mortgages include a bouwdepot” had no source and did not help calculate Sanne's deduction. The chart is a labelled illustrative invoice schedule, not a national mortgage statistic or forecast of net tax benefit.
