It is taxed at 40%, so it's an inherent -1.2% interest rate. Otherwise you're spot on. The "huurwaardeforfait" is just a handy political fiction to get more ta

It is taxed at 40%, so it's an inherent -1.2% interest rate. Otherwise you're spot on. The "huurwaardeforfait" is just a handy political fiction to get more taxes from home owners, who are subsidized a lot because mortgage interest is deductable. It was probably politically easier to get a law for a new tax through parliament than to lower the mortgage deduction at th etime.