Gaining financial benefits at the end of the year, who doesn’t want that? These are our end-of-year tips for, among other things, mortgages and savings.
Spend money for tax benefit
Spending money is not only fun, it can also help you pay less tax next year. If you have more than € 25,000 in savings on 1 January (or € 50,000 with a tax partner), then you pay capital gains tax on that part.
It can therefore be interesting to bring forward a planned major purchase in order to reduce your savings.
Repay the mortgage
If you own a home, you can pay off the mortgage in part with savings. You may therefore end up in a lower risk class and you will pay less mortgage interest. Because you can only pay off part of the mortgage without penalty, it can be interesting to make a repayment now and again next year. Read when it is advisable to pay off.
More return for your savings
With the current low interest rate on savings, the return on your savings is limited. Taking into account inflation and capital gains tax, your savings will be worth even less. Now you can wait for the interest rate to rise again. In our savings rate expectation you can read that this will take a while.
We therefore have a number of tips for a higher return on your savings:
- Do you save with a large bank? Then you can double your savings rate by choosing the highest savings rate.
- Secure your savings temporarily or opt for saving with conditions for higher savings interest
- Start investing. Read our step-by-step plan ‘investing for beginners’.
Borrow money cheaply
Not only is mortgage interest low, borrowing money with a consumer credit is also cheap at the moment. Bringing out a loan can prevent you from paying capital gains tax. With a consumer credit you reduce your taxable capital. You must then be sure that you would also take out the loan next year. This also applies to private loans.
Switch with energy for a discount
Have you ever switched from an energy company this year? Our advice is: do it. In addition to choosing the lowest premium energy in the market, you will receive a welcome bonus from many energy companies. This premium transfer can amount to € 235 and you will receive it at the end of your energy contract. Compare energy rates of all airlines including welcome discount.
Donate money for a home
From January 1, 2017, the gift exemption will be increased to 100,000. The beneficiary must be between 18 and 40 years old and a family relationship is no longer a requirement.
The increased gift exemption for the owner-occupied home is one-off with the following additional provisions:
- If you made a donation to the same beneficiary in 2010 up to and including 2014, the increased exemption does not apply.
- If you have already donated to the same beneficiary in 2015 or 2016 under the increased exemption, then you can supplement this amount in 2017 or 2018 with a maximum of € 46,984.
- If you have already made one-time exempt donation for 2010, from 2017 you may top up a maximum of € 27,567. If you want to make a large donation in the future, then it is better to donate € 27,567 this year. You then increase the gift exemption for the coming years by € 46,984.
You can spread the donation over 3 years. This is interesting if the donation is used to pay off the mortgage. You can often only pay off part of the mortgage without penalty.