Can I deduct the interest on my mortgage financing from taxes?

If the property is owner-occupied, it is generally not possible to claim the interest as a tax deduction. This means that interest costs cannot be deducted from taxes, which can represent an additional financial burden. However, the situation is different for rental properties. In this case, the interest on the loan can be deducted as “income-related expenses” from the rental income. As a result, the taxable profit is reduced, which in turn lowers the tax liability. This serves as an effective way to reduce the tax burden and thereby increase the profitability of the property.