Can I set off the financing of the property against tax?
The interest payments for property loans can be set off against tax if the loan has been taken out for purchases from which you receive taxable income. In this case, it is possible to claim the interest payments for the loan in your tax return. These fall under income-related expenses. Loans which you have only taken out for private purposes are not normally taken into account in taxes. For example, if you live in the house yourself you can’t set off the interest on the loan. Of course, there are exceptions to every rule. You can set off the interest if you have a second home for business purposes. The second home acts as your residence during the working week because your main residence would be too far from your workplace.