- 26/6/2024

Combining tax-efficient savings with a mortgage loan

3min

With pension savings and long-term savings, you can save for your retirement in a tax-efficient way. In Belgium, these solutions offer a fiscal advantage in the form of tax breaks. But what happens if you're repaying a property loan and already benefiting from a fiscal advantage? Can you combine this with the tax relief you receive from pension savings or long-term savings? 

Combining pension savings and a property loan 

Are you repaying a property loan? If so, you may already be benefiting from a fiscal advantage. You can also benefit from additional tax relief with pension savings. In most cases, you can easily combine them. 

• Pension savings: with pension savings, you are entitled to a tax reduction on your payments. Find out more about the tax-exempt ceilings and the fiscal advantage. 

• Home loan: You also qualify for tax advantages when you declare the costs associated with your home loan (interest paid, amortisation, outstanding balance insurance). The amount of tax reduction you'll receive depends on the type of loan, its term, and the year in which you took out your home loan. This information is provided to you when you sign the contract. In principle, this has no impact on your pension savings. 

Combining long-term savings and a property loan 

Do you have a property loan without a tax advantage? In that case, you can benefit from the advantages of long-term savings. 

Do you have a property loan with a tax advantage? You may also be able to benefit from the advantages of long-term savings. However, this option and the amount you can save depend on the following factors: 

• The nature and amount of your net taxable earned income  

• Your current long-term savings (whether through a property loan or not) 

• The maximum amount for long-term savings, which is typically indexed annually  

• Whether the expenditure relates to your family home (primary residence), your second home, or a buy-to-let property (investment property)  

• The start date of your property loan. You can find more information on the taxation of your home on Wikifin: 

• Can I combine the fiscal advantage for my own home with the fiscal advantage for long-term savings? 

• What are the rules in your region when buying a home? 

 
Why combine the two? 

Save for later and boost your retirement savings. Whether or not your property loan entitles you to a tax advantage, as long as you have a taxable income, you can combine the loan with a tax-efficient saving scheme. The more you optimise your savings by using different schemes, the more you reduce your tax bill. 

Boosting your retirement savings is always useful. Whether or not your property loan entitles you to a tax advantage, as long as you have a taxable income, you can combine the loan with a tax-efficient saving scheme. The more you optimise your savings by using different schemes, the more you reduce your tax bill. 

Have you (almost) paid off your property loan? 

Do you qualify for a tax advantage on your property loan? You may be able to combine it with tax-efficient savings for your pension. What if you have (almost) paid off your property loan? On the one hand, you will lose an important tax advantage, but on the other hand, your disposable income will increase. 

Are you not saving for your retirement yet? Now would be a good time to start. With a bigger budget and more tax options, you can make the most of your situation. 

Are you already saving for your retirement? Let's explore how you can increase your fiscal advantage even if you have almost paid off your property loan. 

Advice that is tailored to your situation 

Would you like personalised advice? Talk to your relationship manager.