Frequently Asked Questions
General
There are many reasons why buying a house in the Netherlands may be sensible
- Buying a house can be cheaper than renting
- In the Netherlands, you can deduct the interest you pay from tax
- Buying a house can be a very good investment
- You have control over the property so you can decorate it how you like
- You might want to buy a house as a source of income by letting it out
- Owning a house brings pride of ownership, and offers a sense of stability and security.
A financial advisor will help you meet your financial goals and priorities. This means we may give advice on how you should allocate your investments, what kind of insurance you really need and explain how certain moves may affect your taxes or estate.
It’s then up to you to decide if you want to follow that advice. We may also recommend third parties if you need more specialised help, such as an expert in trusts or family businesses.
In addition, buying a house in a foreign country can be quite a challenging process.
FVB De Boer is a boutique firm focused on expats, offering independent, unbiased, and expert financial guidance on:
- Mortgages
- Insurances
- Financial planning
- Portfolio reviews
- Wealth management
- Pension
- Trusts
- Estate planning
- Buy to let
- We have a deep understanding of the hurdles expats encounter
- We have been working with expats since 1998
- We always offer independent advice based upon your own unique circumstances. We have no contractual obligation of any kind to advise you to choose the financial products of certain lenders or insurers
- Our extensive personal service is tailored to meet your specific needs.
Our office is completely independent when giving advice. That is to say, we have no contractual obligation of any kind to advise you to choose the financial products of certain lenders or insurers. We do work with a number of preferred providers but we determine ourselves who they are. At your request, we will tell you which providers we do business with.
Mortgages
The time it takes to have a mortgage application approved differs per client and mortgage provider. Typically, the complete process of arranging a mortgage should take somewhere between two and four weeks.
What is FVB de Boer Financial Consultants’ role in arranging a mortgage?
Your FVB de Boer advisor will do the following:
- Discuss your financial situation and draw up a more detailed overview
- Analyse your personal financial situation, your knowledge and experience with mortgages, your objectives and willingness to take risks
- Discuss the existing mortgage structures and explain your maximum mortgage and the monthly mortgage payments involved
- Assess the affordability of the mortgage payments in the event of occupational disability, unemployment or death
- Advise on the most suitable mortgage structure, repayment method and how to cover risks.
- Discuss and explain the advice given by our office and answer any questions you might have
- Apply for offers with available banks
- Verify/compare offers and advise on the best propositions
- If necessary, arrange to have your house valued
- Arrange for a bank guarantee to be issued, if applicable.
- Collect and screen the documents required to effect the mortgage
- If necessary, discuss once more the recommended financial products
- Maintain contact with the bank(s) in order to reach a final agreement on the intended mortgage
- Maintain contact with the civil-law notary until the date of transfer
Unlike many mortgage advisors, FVB De Boer Consultants does not provide an online mortgage calculator. This is because online mortgage calculators can only offer an estimate of your borrowing capacity and often fail to consider the complexities surrounding expat mortgages, such as:
- Income sources, including foreign currency, above the basic salary, such as holiday pay, 13th month, fixed year-end bonus (not tied to company performance), and commission/overtime based on the average of the previous 12 months.
- Different tax rules and regulations may apply to your particular situation
- The impact of the 30% ruling
A personal consultation with one of our experienced mortgage advisors will give you a more accurate overview of how much you can expect to borrow, by taking factors such as interest rates, repayment terms, and fees into account.
Find out more.
In order to quickly assess the feasibility of you getting a mortgage and how much you can borrow, we would need the following information:
- A recent salary slip (or one each if you are buying as a couple)
- Do you have any loans or other financial obligations?
- What are your savings and/or other assets?
- You will need to put down a modest amount of your own cash into the house to cover costs. How much do you have available?
- We will also need to know which mortgage suits you best, depending on your lifestyle and personal circumstances.
Which mortgage suits the expat best, depends on his/her lifestyle and personal circumstances.
With some Dutch mortgages, you have to start paying off the loan immediately along with the interest, whereas other mortgage types allow you to postpone repayments and only pay the interest instead.
In 2013 there were some important changes in the way mortgages are taxed, and therefor nowadays the only types of mortgages that are still eligible for the interest tax deduction (renteaftrek) are the annuities and linear mortgage models, whereby the loan needs to be repaid within 30 years via monthly repayments.
Alternative Dutch mortgage models are mainly variations on annuities and linear mortgages. However, if you take out one of these mortgage forms, you may no longer be entitled to mortgage tax relief.
Types of mortgages:
- Annuities mortgage (annuïteitenhypotheek)
- Linear mortgage (lineaire hypotheek)
An annuity mortgage, also known as a repayment mortgage, is the most common type.
The lender works out the amount you need to repay each month to clear your mortgage by the end of an agreed term. Your monthly repayment is made up of two parts:
An interest payment on the loan (will reduce over time)
A capital repayment (increases over time)
In the early years, most of your repayments will go toward paying off interest on your mortgage. But as your mortgage reduces, the interest part of the repayment goes down. So as time goes on, more of your monthly repayments go toward paying off the capital.
You can usually choose either a variable rate or a fixed rate annuity mortgage or, in some cases, a mixture of both (known as a split rate).
In the early years of the mortgage period, the annuities mortgage usually has lower monthly payments than a linear mortgage. Your interest payments may also be tax deductible.
Like the annuities mortgage also the, linear mortgage repayment is made up of two parts:
An interest payment on the loan (will reduce over time)
A capital repayment (fixed amount per month)
With a linear mortgage, you start to repay the mortgage loan by a fixed amount every month. On top of this, you pay interest, but the interest payments will reduce over time since you are gradually paying back the mortgage loan. Since the mortgage amount will decrease, so will your interest payments.
A linear mortgage can be useful for people who wish to repay their mortgage as quickly as possible and who are expecting a reduction in income sometime in the future. However, the monthly mortgage payments are relatively high in the beginning.
With a linear mortgage you repay a fixed amount every month, plus the interest. Your debt is reduced every month, which also reduces the interest. A linear mortgage is useful when you want to pay off your mortgage as quickly as possible, although initial repayments are relatively high.
You can usually choose either a variable rate or a fixed rate annuity mortgage or, in some cases, a mixture of both (known as a split rate). Your interest payments may also be tax deductible.
There are circumstances whereby the bank will actually allow you to just pay interest and repay the capital from savings or investment accounts. If you take out such a mortgage, you will not be entitled to mortgage tax relief.
A credit mortgage loan is a flexible mortgage and operates in a similar way to a normal bank account from which you can withdraw and deposit money. You pay monthly interest on the amount you borrow, which depends on the value of your house. If you take out such a mortgage, you will not be entitled to mortgage tax relief.
In an investment account mortgage, you invest a certain premium into a stock market account. This premium can be a lump sum, a monthly or an annual premium. If you take out such a mortgage, you will not be entitled to mortgage tax relief.
This mortgage combines a loan with a life insurance policy. The client pays a monthly or an annual premium, which is often invested in a mutual fund. The premium can include life insurance coverage. If you take out such a mortgage, you will not be entitled to mortgage tax relief.
This mortgage type is linked to a life insurance but with a guaranteed return. The interest you get on your premium is equal to the interest you pay, so you are 100% sure that your mortgage will be repaid at the end of the mortgage term. If you take out such a mortgage, you will no longer be entitled to mortgage tax relief.
This type of mortgage offers a high level of security. With a bankspaarhypotheek you will save money at a fixed rate. This rate is equal to the mortgage interest rate, and at the end of the term, you will be sure that you have saved enough money to repay the mortgage loan.
If you take out such a mortgage, you will no longer be entitled to mortgage tax relief.
A combination of interest-only, savings and investment mortgages. You make interest payments, but you have flexibility in how you generate the capital to repay the loan. During the course of the mortgage term, you can switch between saving and investing, taking advantage of low-interest rates and investment opportunities, or seeking less risk in a savings account. If you take out such a mortgage, you will no longer be entitled to mortgage tax relief.
Overall we normally tell people to reserve around 5% of the cost of the house for additional costs when buying a house in the Netherlands. But not everything is mandatory, and most fees are negotiable:
Property transfer fee: This fee is equivalent to 2% of the purchase price for an existing property but does not apply for new homes. If you are under 35 and your new home costs less than €400,000 you will not have to pay property transfer tax.
If you are buying a home covered by the National Mortgage Guarantee scheme, you will have to pay a fee of 0.7% of the mortgage amount.
Valuation costs: These costs typically range between €750 and €850. This fee is tax deductible.
Technical survey: The cost of a technical survey ranges from €400 and €600 but will be higher if you have the foundations checked.
Mortgage advice: You can expect to pay between €2,750 and €4,500 for mortgage advice. This fee is tax deductible.
Legal advice: You can expect to pay between €1,750 and €2,250 in notary fees. The fee for the mortgage is tax deductible. Reimbursing the current owner for housing taxes (rioolrecht, OZB, afvalstoffenheffing) they have paid up front for the whole year
- Interest paid on your mortgage (Tax deductible for maximum 30 years)
- Repayments of the mortgage
- Insurances
- House insurance is mandatory unless arranged by the VVE (Home owners association) – depends on the rebuilding value
- Life insurance if desired but it is not mandatory
- Real estate tax (OZB taxes) – these vary per municipality and depends on WOZ value
- Waste taks (Afvalstoffenheffing) – varies per municipality
- Sewage charges (Rioolheffing) – varies per municipality
- Gas, water, electricity, internet, television usage costs – these obviously vary a lot per household and supplier. https://partnerpete.com/ is a company which specializes in getting expats connected to the best utility providers in The Netherlands
If you own a property in the Netherlands and you use it as your main residence, then you may be able to claim some tax deductions.
In 2023, the maximum against which you can deduct the mortgage interest is 37.1% and the maximum period you can claim for is 30 years. The deduction will be reduced in the coming years. If you live in a leasehold property, you can also deduct the cost of ‘renting’ the land on which your property has been built (erfpacht) from tax.
These deductions can be claimed via your tax return if you are liable for tax in the Netherlands.
One-off costs which are tax deductible (costs related to the financing/mortgage)
- The mortgage contract (hypotheekakte)
- Valuation costs (taxatierapport)
- Mortgage arrangement cost (hypotheekadvies by FVB de Boer )
- Costs related to the National Mortgage Guarantee (NHG)
- Any fine which has to be paid because of early repayment of the old mortgage (when you decide to change mortgage provider
Not deductible (costs related to the property itself)
- Transfer tax (overdrachtsbelasting)
- Transfer contract (leveringsakte)
- Restate agent fee (makelaarscourtage)
- Technical report (bouwkundigrapport)
- Reimbursing current owner for housing-related taxes already paid (rioolrecht, OZB, afvalstoffenheffing)
- Costs of maintenance and renovation
- Repayments of the mortgage principal
Conditions attached to a mortgage are of great importance and there are several you should always have to take into consideration:
- Whether and when it is possible to make extra repayments?
- Are there any fines when making extra repayments?
- Can you register your mortgage for a higher amount? This is in order to make it easier to borrow extra money in the future for future renovations.
- Is it possible to take the mortgage with you when you move to another house?
We call that a ‘moving arrangement’ (verhuisregeling). This can be of great benefit to you in the future. Not every mortgage has a moving arrangement.
NOTE:
Mortgage providers can offer you an advantage, basic or budget mortgage at a lower interest rate. But beware: the stripped-down conditions may cost you money in the future
This is an issue you should discuss with your financial advisor. Most expats choose a fixed mortgage rate of 10 years but much depends on other factors, such as how long you plan to stay in the Netherlands and how much risk you are willing to take.
- We have understand the hurdles expats encounter and offer a personalised service
- We have over 20 years of experience in working with expats, and we understand their particular needs
- We always offer independent advice based upon your own unique circumstances. We have no contractual obligation of any kind to advise you to choose the financial products of certain lenders or insurers
- We can usually help even if your situation is complicated
If you are selling your property, your mortgage provider may charge an administrative fee if you end your mortgage early.
There will also be a notary fee for removing the mortgage from the Land Registry records (kadaster).
Generally speaking, there will be no extra costs for repaying your mortgage in full at the following times:
- At the end of your fixed interest period
- If you have a variable-interest mortgage
- On the death of one of the mortgage holders
- If you switch to a higher interest rate at the same bank
Your FVB de Boer Financial Consultants advisor will be able to help you with this.
The exact conditions for paying more off your mortgage vary from bank to bank, but typically in the Netherlands you can make a 10% extra repayment without facing a penalty. Check with your FVB de Boer Financial Consultants advisor first.
The maximum mortgage you can take out is equal to 100% of the value of the property. You will therefore have to pay the additional costs (approximately 5%) yourself.
Dutch buy-to-let, or investment, mortgages are specifically designed for individuals who intend to purchase a property with the aim of renting it out to tenants.
Expats must meet specific qualifications in order to be eligible for a buy-to-let mortgage in the Netherlands. These include:
- Having lived and worked in the Netherlands for a minimum of three years
- Having a minimum gross annual income of €45,000
- Being an EU national or meeting the residency requirements
- Having a significant amount of personal funds available to cover a portion of the property purchase price, typically around 40-50%
These are general requirements. Banks might have other, specific requirements and criteria for approving a mortgage application.
Find out more.
The NHG is a government scheme that covers homeowners’ losses if they have to sell their house for less than the outstanding mortgage because of divorce, illness or unemployment. Homeowners pay a surcharge of 0.7% on their mortgage to cover the cost of the scheme, but are often able to borrow at lower rates because of the reduced risk. In 2023, the scheme covers properties of up to €405,000.
Taxes
If you own a property in the Netherlands and you use it as your main residence, then you may be able to claim some tax deductions.
In 2023, the maximum against which you can deduct the mortgage interest is 37.1% and the maximum period you can claim for is 30 years. The deduction will be reduced in the coming years. If you live in a leasehold property, you can also deduct the cost of ‘renting’ the land on which your property has been built (erfpacht) from tax.
These deductions can be claimed via your tax return if you are liable for tax in the Netherlands.
If you own a property in the Netherlands and you use it as your main residence, then you may be able to claim some tax deductions.
These deductions can be claimed in your tax return if you are taxable in The Netherlands.
You can also claim a provisional monthly refund. This has to be done every year again. The costs can be divided in one time only costs and annual costs.
One-off costs which are tax deductible (costs related to the financing/mortgage)
- The mortgage contract (hypotheekakte)
- Valuation costs (taxatierapport)
- Mortgage arrangement cost (hypotheekadvies by FVB de Boer )
- Costs related to the National Mortgage Guarantee (NHG)
- Any fine which has to be paid because of early repayment of the old mortgage (when you decide to change mortgage provider
Not deductible (costs related to the property itself)
- Transfer tax (overdrachtsbelasting)
- Transfer contract (leveringsakte)
- Restate agent fee (makelaarscourtage)
- Technical report (bouwkundigrapport)
- Reimbursing current owner for housing-related taxes already paid (rioolrecht, OZB, afvalstoffenheffing)
- Costs of maintenance and renovation
- Repayments of the mortgage principal
No this is not possible.
The 30% ruling is a Dutch tax exemption for employees who were hired abroad to work in the Netherlands. If a number of conditions are met, the employer is allowed to pay you 30 percent of your salary as a tax-free allowance. The tax-free allowance is considered compensation for the expenses the employee faces by working outside his or her home country.
To be eligible for the 30% ruling, you must meet these conditions:
- You must work for an employer that is registered with the Dutch tax office and pays payroll tax
- You and your employer have to agree in writing that the 30% ruling is applicable to your position
- You transferred from abroad were recruited abroad
- You did not live within 150 kilometres from the Dutch border for the last 18 months
- Your salary is nearly €32,000 per year if you are under the age of 30 and almost €42,000 if you are older
- You need to have scarce skills
There is no minimum required salary for scientific researchers who are employed by a university or a research institution that is subsidised by the government. Medical specialists in training also have no minimum required salary.
The maximum duration of the 30 percent tax ruling is five years. Any period spent in the Netherlands over the last 25 years will count towards this period.
There are other benefits to the Netherlands’ 30 percent ruling.
- Under the 30% ruling you can opt for ‘partial non-residency status’. Even while residing in the Netherlands, you will be considered to be a non-resident taxpayer in Box 2 and Box 3 if you opt for partial non-resident status, although for Box 1 income (your salary) you will still be considered a resident taxpayer.
- If you have a foreign driving licence, in most cases you have to redo your test in order to obtain a Dutch licence. However, if you benefit from the 30% ruling, you may be able to exchange your foreign driving licence for a Dutch licence without retaking the test. This also applies to all family members registered at the same address as the holder of the 30% ruling.
If you would like to know more about the 30% ruling, please contact one of our financial advisors.
You can apply for tax refunds in your annual income tax return or by filing a request for a provisional refund. You could also contact one of our financial advisors.
In general, an individual will not have to pay tax on capital gains. So your main residence is sold, and the profit is not taxable. Check with one of our financial advisors if the property is used as an investment.
Insurance
Life insurance is compulsory if you have a mortgage which falls under the National Mortgage Guarantee scheme. In most other cases it is not. We will discuss the pros and cons with you when looking at your personal financial situation.
Life insurance is a straightforward product. It covers a certain amount within a certain period of time and will pay out if the insured person dies within this period. It can cover two lives or just one, depending on the situation and can be pledged to a mortgage if required.
The premium is based on the size of the coverage, age and health and there is also a difference in premium between smokers and non-smokers (smokers will get a higher premium).
No, life insurances are not tax deductible.
Personal liability insurance insures you for damage you might cause to other people or their property.
Basic health insurance is mandatory in the Netherlands. It covers the minimum package of treatment set down by the government. You can also take out supplemental or top-up insurance covering dental treatment and extra therapies.
Homeowners are required to have insurance coverage for their property to protect against unforeseen risks such as fire, theft, severe weather, and flooding. This type of insurance is known as “opstalverzekering” in Dutch.
For apartment owners, joint policies are often arranged either through the owners’ association or independently.
Find out more.
Wealth/Investment Management
We offer investment management services for expats and other foreign nationals in the Netherlands.
Wealth management is a high-level professional service that combines financial and investment advice, accounting and tax services, retirement planning and legal or estate planning.
Wealth management is more than just investment advice, as it can encompass all parts of a person’s financial life. The idea is that rather than trying to integrate pieces of advice and various products from a series of professionals, clients benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own or their family’s current and future needs.
As FVB De Boer we offer independent advice and extensive personal service in order to help you achieve your financial goals, now and in the future, via tailored solutions.
Studies show that a financial plan can benefit people of all income levels and all ages. If you look at people who are financially successful, most of them have been making smart financial decisions all their life. Wealth building takes years and years, but it is never too late to begin. So start with an independent financial advisor who can help you determine what to do.
Give us a call in order to see what we can do for you.
It all starts with a cup of coffee and a introductory meeting. Here we will assess your individual financial goals and attitude to risk. This includes information on how much you want to invest, how much return you want, when you will need to access your money, and how much you are willing to risk losing.
We continuously monitor potential investments. Investment products can range from cash deposits to government bonds, and from savings accounts to managed portfolio solutions. We calculate the investment risks and returns of each, so we can advise you on all the options.
Together we create a personal investment strategy. This is important at the start of your investment journey, but will need to be checked regularly. As your work, family or other circumstance change, your portfolio may need to be adapted to provide you with the best results.
Do you want to know more about our solutions and how we can help you? Feel free to contact us, the coffee is on us.
Our office is completely independent when giving advice. That is to say, we have no contractual obligation of any kind to advise you to choose the financial products of certain providers. Periodically, we make a selection of the financial products that banks and investment companies provide. When doing this, we do work with a number
of preferred providers. But we determine for ourselves who they will be. At your request, we will tell you with which providers we do more or less intensive business.
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Please remember that the value of investments, and any income received from them can fall as well as rise, is not guaranteed and you may not get back the amount you invested. This could also happen as a result of changes in currency exchange rates, particularly where overseas securities are held or where investments are converted from one currency to another. We always recommend that any Investments held should be viewed as a medium to long-term investment, at least five years.
Commercial Real Estate
Buying an apartment to lease out can often be a good investment as, in addition to rental income, an increase in property value can be expected as well.
Obviously you can purchase such properties with your own private cash, however taking out a mortgage has also recently become an option.
The bank may set a few more conditions regarding the rental of the apartment. For instance, a long-term occupation needs to be the case – Airbnb or any other short-term rental is not allowed.
The bank will expect buyers to cover roughly 40 per cent of the purchase price with their own cash.
Please contact one of our mortgage advisors in order to hear how we can help you and which other conditions/requirements apply.
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Our various services for expats
FVB de Boer is a leading international broker of expatriate financial services, products, and financial advice. Our financial advisors help expats in the Netherlands and abroad with expat mortgages, pensions, managing of investments, regular savings, taxes, insurances, and much more. Within this website, we provide expats with information on the areas we cover and the specialist nature of what we do.
Mortgage Advisors
At FVB de Boer, we have established good working relationships with a number of Dutch banks to help you realize your dream property.
Home Insurance
FVB de Boer helps you to secure your property with building and fire insurance or home contents insurance for the short or long term.