Are mortgage insurance premiums a deductible expense when reporting property income?

Although they represent a significant expense when investing in rental property, mortgage insurance premiums can be deducted from your property income. However, several conditions must be met.
 

Mortgage Insurance: An Expense Not to Be Overlooked
While the interest on a mortgage represents the largest expense in the total cost of a loan, mortgage insurance should not be overlooked either. Are these insurance premiums deductible from real estate income? The website SeLoger.com says yes, provided, however, that they are part of a rental investment. As a reminder, the purpose of mortgage insurance is to protect your mortgage in the event of unforeseen circumstances.
 

Eligibility Requirements for the “
” Deduction Additional conditions must be met to qualify for the deduction. First, the benefit applies only to properties intended for rental and cannot be applied to a primary residence. The owner must also have opted for the actual income tax system, as the micro-property tax regime already provides a 30% deduction on annual rental income. Furthermore, the owner must pay the contributions personally and be able to provide proof of eligibility for this deduction.
 

Variable Costs
In addition, the deduction for insurance costs applies only to the first ten years of the policy. If the deduction exceeds rental income, the property loss can be carried forward to the following year’s tax return for up to ten years, subject to a cap of 10,700 euros. The landlord is free to switch mortgage insurance providers at any time, as costs and terms may vary from one insurer to another.
 

Other Possible Deductions
In addition to insurance premiums, you can apply a range of deductions to your real estate income, such as application fees, mortgage registration fees, loan interest, guarantee fees, and other bank fees. Our colleagues recommend comparing insurers’ offers based on the Standardized Information Sheet (FSI) provided by the bank during the loan simulation.
 

In summary, mortgage insurance premiums may be deducted from real estate income under certain conditions, thereby offering an opportunity to reduce the tax burden associated with a rental investment.