Moving costs tax deductible: you need to know this

Are moving expenses deductible? You have probably moved before and you know that moving costs can add up. As a result, it is therefore more than logical that many people wonder after the move whether moving costs are tax deductible.

Are moving expenses tax deductible?

Of course! There are some moving costs tax deductible and we are happy to explain this to you. However, we do this in a very global manner and it is best to contact your bank or mortgage advisor for more information about your personal situation.

Which moving expenses are deductible?

We often get the question whether the costs of a move are tax deductible. Deducting moving expenses from the tax depends entirely on your personal situation.

Which expenses are deductible depends on the situation

It must be considered whether it concerns a private or a company relocation. You also need to consider whether you are moving to a rental or owner-occupied home.

Oh, and don't forget the mortgage. Because this is all quite complicated, we will try to explain it as simply as possible in this article.

Private tax-deductible moving expenses

Actually there are for one private move no tax deductible costs. However, there are two exceptions that make various costs deductible.

When you have bought or sold a house, you may deduct certain costs from your taxable income. Some examples of these costs are consultancy and mediation costs for the mortgage or loan, commission, housing costs insurance costs for the National Mortgage Guarantee, notary costs and appraisal costs for mortgage advice.

There are more costs that are deductible in this case, but for up-to-date information on this, it is best to visit the website of the tax authorities consult.

If you take out a loan to pay for your move, you can deduct this from your assets on your tax return. So you end up paying a lot less tax. How high this amount is also depends on whether you have a tax partner or not.

Are business moving costs deductible?

When you are an entrepreneur will move and this concerns business reasons, then the moving costs are often partially tax deductible.

The costs of moving your household effects are deductible from your profit. You can also always deduct a fixed amount of € 7750. These rules also apply when one of the employees moves and you as an entrepreneur move relocation allowance pays out.

When are moving costs actually business?

Possible relocation costs for an entrepreneur can be business if the move is within 2 years after moving or setting up your company.

It is also important that your home-work distance decreases by at least 60% due to the move. Before the move, your workplace had to be at least 25 kilometers away from your place of residence. As an entrepreneur, you can of course also only deduct the moving costs for your business contents and not the costs for moving your personal effects.

We know... it all sounds very complicated and it actually is. Do you want you moving company and do you want to know which things are considered business costs? Then it is best to consult the Tax Authorities website.

There are a number of other costs that are deductible, which are especially useful during such a move. This turns out to be one business relocation therefore have a limited tax deductibility, but your own business costs are also deductible.

By the way, do you incur extra business travel costs during the move because you have to use public transport, for example? Then it is useful to know that these costs are also fully deductible.

Non-tax-deductible moving costs for a private move

As you may have read, not all moving expenses are tax deductible. This means that there are also costs that will be for your own account. Consider, for example, brokerage or brokerage fees. Unfortunately, the 'buyer costs' are also not tax deductible.

What are other non-deductible expenses?

There are still a number of costs that you cannot deduct from the tax. These are brokerage fees, renovation costs, transfer and turnover tax and the lump sum payment for ground lease.

For up-to-date information about non-deductible costs, we would like to refer you to the website of the Tax and Customs Administration. Here you can find 'no-obligation moving expenses deductible' information.

Moving as an employee

If you as an employee have to move because of your work, the costs may be reimbursed tax-free. In this case, the maximum tax-free reimbursement is 12% of your annual salary with a maximum of €5445.

Save more on moving costs

If you have not yet been able to find a moving company for your move, you can now submit a free request to Moving to receive several moving quotes. This way you also save on moving costs!

After we have received your request, we will send it to the 6 best professionals movers from your region and they will all contact you within 24 hours to discuss the free quotes.

Frequently Asked Questions

Am I entitled to moving expenses?

If you are forced to move, you are entitled to a relocation allowance. Do you have to move because of your employment? Then your employer can reimburse the costs of this tax-free.

How can I apply for a relocation allowance?

You can do this at the WMO counter of your municipality. You can also look at this together with the landlord. Are you moving for work? Then your employer can best help you with this.

What is a non-deductible expense?

These are resources such as food and drink, but also stimulants, for example.

Is energy label deductible?

No, unfortunately this is not possible in the Netherlands and an energy label is not deductible for your income tax.

What is included in purchase costs of a home?

These are transfer tax, notary costs, any commission, bank guarantee, appraisal costs and consultancy and brokerage costs.