Buying a home with family support as an expat

Buying a home as an expat often involves more than savings and a mortgage. Many buyers receive financial support from family, either as a gift or a private loan. On this page, we explain how family financing works in the Netherlands, the key differences between gifts and loans, and which tax, reporting and lender rules apply.

You will also learn how Dutch lenders assess family loans, when additional documentation may be needed, and what to consider if you later move abroad. This helps you structure family support clearly and prepare it properly for your Dutch mortgage application.

When family provides financial help, it is important to understand whether the contribution is a gift or a loan. A gift does not need to be repaid, but Dutch gift tax may apply depending on the situation of the person making the gift. For expats receiving money from abroad, the donor’s nationality and previous residence in the Netherlands can be relevant.

A family loan, on the other hand, must be repaid and should have clear written terms, such as the loan amount, interest rate, repayment schedule and duration. Both options can have tax and mortgage implications, so it is important to document the arrangement properly.

Not necessarily. If you live in the Netherlands as an expat and receive a gift from family abroad, simply receiving the money in the Netherlands does not automatically make it subject to Dutch gift tax. Whether Dutch gift tax rules apply mainly depends on the donor’s nationality and previous residence in the Netherlands.

According to the Dutch Tax Administration’s rules for gifts from abroad:

• The donor is Dutch and left the Netherlands less than 10 years ago: Dutch gift tax rules can still apply.
• The donor is not Dutch and left the Netherlands less than 1 year ago: Dutch gift tax rules can still apply.
• The donor has never lived in the Netherlands: you do not have to file a Dutch gift tax return.
• The donor is Dutch but left the Netherlands 10 or more years ago, or is non-Dutch and left 1 or more years ago: you generally do not have to file a Dutch gift tax return on that basis.

If Dutch gift tax rules apply, the exemptions explained above determine whether you actually have to pay gift tax. The donor’s country of residence may also have its own gift tax or reporting rules, so international gifts may need to be checked in both countries.

Not necessarily. A standard family loan does not require a notarial deed, but the arrangements should be recorded in a clear written agreement. This should include the loan amount, interest rate, repayment terms and duration.

Using a notary can be useful for larger or more complex arrangements, particularly when you want additional legal certainty or need to consider what happens in the event of death, separation or other changes in circumstances.

If the family member is given a formal mortgage right over the property as security for the loan, this goes beyond a standard private family loan and requires formal notarial arrangements.