Tax bonus on the increase in the housing loan instalment paid for 2023

With effect from 1 January 2024, the possibility of applying tax benefits from the increase of the paid instalment of a housing loan due to an increase in interest was added in Act No. 595/2003 Coll., on Income Tax (hereinafter referred to as the “Income Tax Act”). A taxpayer who does not claim the tax bonus on interests paid for 2023, can claim the tax bonus on the increase in the loan repayment paid. The taxpayer can claim the tax bonus through the annual settlement of advance tax payments on income from employment or by filing a personal income tax return.

The state will reimburse the taxpayer up to 75% of the difference between the lower average annual instalment paid in 2022 and the higher annual instalment paid in 2023, up to a maximum of EUR 1,800 per year. However, the taxpayer’s monthly income must not exceed 1.6 times the average monthly salary of an employee for 2022, i.e. EUR 2,086.40. A taxpayer claiming the tax bonus on the increase in the instalment paid does not have to meet the age condition, as is the case for the tax bonus on interest paid.

The aid in the form of the tax bonus on the increase in the loan instalment paid will also be available for loans that have been refinanced in the past, but subject to other conditions (date of refinancing and purpose of the loan as stated in the loan agreement).