Optimize Your Mortgage Loan Interest Deduction
Taking out a mortgage loan to buy or renovate a property can be expensive, but the tax deduction on your mortgage interest can significantly reduce the real cost of your project. By structuring your loan correctly, you can take full advantage of the tax benefits available in 2026.
Whether you are planning to buy your main home or invest in another property, understanding how mortgage interest is deducted from your real estate income is essential to optimize both your borrowing capacity and your tax situation.
Turn Your Interest into Tax Savings
Mortgage interest is not just a cost: it is also a powerful tax optimization tool. When correctly declared, these interests can be deducted from your real estate income as part of your personal income tax return.
- 100% deduction of mortgage interest from real estate income
- Additional interest deduction possible under conditions
- Potential tax reduction on capital amortization
How Does Mortgage Interest Deduction Work?
When you take out a mortgage loan to acquire or renovate a property, the interest you pay is, in principle, 100% deductible from all real estate income included in your personal income tax return. This means that every euro of interest paid can reduce the taxable base of your real estate income.
For properties that are not rented, real estate income corresponds to the cadastral income for land or for the borrower’s main residence, and to the cadastral income increased by 25% for other properties. For rented properties, the real estate income taken into account will be either the cadastral income or the actual rent received, depending on the type of rental and the applicable tax rules in 2026.
If the real estate income you declare is higher than the mortgage interest you pay, the interest will be fully deducted from this income. This mechanism may significantly reduce the taxation of your real estate income and thus lower the overall cost of your mortgage loan over time.
Even when you have the financial capacity to buy in cash, using a mortgage loan and deducting the interest may, in many cases, be more advantageous from a tax perspective.
Additional Interest Deduction Under Conditions
If your real estate income is lower than the interest paid on your mortgage loan, you may benefit from an additional interest deduction, subject to specific conditions. This mechanism is designed to further support households investing in their own home.
Conditions for Additional Interest Deduction
- The deduction applies to the construction of your own home, its acquisition as a new property, or its renovation when the property is more than 15 years old.
- The property must constitute the borrower’s own residence; buildings that do not serve as your main residence are excluded from this additional deduction.
- The mortgage loan must have a minimum duration of more than 10 years to qualify.
Tax Reduction on Capital Amortization
Beyond the interest deduction, there may also be a tax reduction on the amounts you pay to amortize or reconstitute the borrowed capital. This concerns, for example, the periodic repayments of your mortgage loan or certain savings contracts linked to your loan, when they meet the applicable tax criteria in 2026.
Properly structuring the split between interest and capital, as well as choosing the right loan term, can therefore have a direct impact on both your monthly budget and your long-term tax optimization. A comprehensive analysis of your situation will allow you to identify the most advantageous configuration.
Why a Personalized Mortgage Tax Analysis Is Essential
The tax rules governing mortgage interest deduction, additional deductions, and capital amortization are complex and can evolve over time. The optimal solution depends on multiple factors: the type of property (main residence or not), whether it is rented or not, the cadastral income, the loan amount and duration, and your overall personal and family situation.
To accurately quantify your tax advantage and determine how much you can borrow under the most favorable conditions, a case-by-case analysis is indispensable. This is where the support of a specialized mortgage broker becomes particularly valuable.
Your tax benefit depends on several elements: your total real estate income, the amount of annual interest, the nature and use of the property, and the specific legal provisions applicable in 2026. A detailed simulation will reveal how these different factors interact in your case.
In many cases, yes. Even if you have sufficient savings, using a mortgage loan allows you to deduct the interest and potentially benefit from tax reductions on capital repayments. Depending on your profile and investment strategy, this may be more advantageous than financing the full purchase price with your own funds.
A specialist can compare different loan scenarios, estimate your potential tax savings over the entire duration of your loan, and guide you towards the structure that best fits your life project. This ensures both a secure financing plan and optimized taxation.
Make Your Mortgage Work for You
A well-designed mortgage strategy transforms fixed costs into tax-optimized investments. Each detail of your loan contract can influence your long-term financial balance.
Get a personalized assessment to understand how much you could borrow and how to structure your mortgage to take full advantage of the interest and capital deduction mechanisms in 2026.
Your Advantages with an Optimized Mortgage Interest Strategy
By combining a competitive mortgage loan with a smart tax strategy, you can lower your total borrowing cost and preserve your financial flexibility.
Maximized Tax Deduction
Benefit from the 100% deduction of your mortgage interest from your real estate income and explore additional deduction options when your income is lower than the interest paid.
Secured & Tailored Financing
Choose a mortgage loan duration and structure adapted to your personal situation, while preserving access to the most favorable tax benefits available in 2026.
Clear, Professional Guidance
Understand, step by step, how your mortgage will impact your tax return and your long-term budget thanks to the guidance of experienced mortgage and tax experts.
Ready to Optimize Your Mortgage Loan Interest Deduction in 2026?
Get a personalized simulation of your mortgage project and discover how much you could save through mortgage interest deduction, additional deductions, and potential tax reductions on capital amortization.
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