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A query was raised regarding whether life insurance premiums, taken out to prevent an increase in mortgage interest rates, are deductible against residential rental income. The Directorate General for Taxes (DGT) ruled that they do not constitute a necessary expense for generating such income.
This ruling clarifies that life insurance policies linked to mortgage terms cannot be treated as deductible expenses for landlords, limiting the tax-deductible costs for real estate income.
The tax team reviews your specific situation.
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