Fiscal home ownership

There is an elaborate tax system in place affecting home ownership and home financing. In short, owner-occupied homes are subject to a real estate tax levied by local communities and are generally exempt from capital taxes. As far as home financing is concerned, interest on mortgage loans is tax-deductible, as are the administrative costs associated with the purchase of the dwelling. Transaction taxes apply when purchasing a home, but these have been significantly reduced in recent years.

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Tax deductibility

Interest on mortgage loans is tax-deductible.

Capital tax

Owner-occupied homes are generally exempt from capital taxes and no capital gains tax is levied on profits on real estate sales.

Real estate tax

Homeowners pay real estate tax based on the estimated value of the property.

Transaction costs

Transfer tax has been lowered. Total transaction costs are now around 5% of the purchase price.