How To Buy A House In The Netherlands
If you are planning to be in the country for some time, you may wish to buy a house in the Netherlands, as it can work out more beneficially financially than renting long-term. However, it is a good idea to make sure you are aware of all the pitfalls too before investing in a foreign country. Read our 10-point guide to make sure that you have thought of everything before taking the plunge.
Can you buy?
There are no restrictions on foreign nationals owning property in the Netherlands. However, the Netherlands has a high proportion of social housing and rent-controlled housing, which can make finding a property harder.
Choose your location
Spend some time deciding what is important to you when looking for a property. Do you want to be in the city center, or does life in the suburbs appeal more? Find out about transport links and costs.
Find out what’s on the market
Get an idea of what you will be able to borrow if you need to take out a mortgage. In the Netherlands, mortgages are available for up to 30 years.
What’s it worth?
Try to make your best estimate of the value of the house, which is primarily determined by the sale price of other houses in the same area. One way to do this is by contacting the national land registry, called Kadaster (kadaster.nl) or by buying an online report with Kadasterdata.nl.
Pay your deposit
At this stage, you may want to make sure you have an agent (makelaar). After the sale price has been agreed, the formal steps towards property transfer take place. Buyer and seller sign a purchase agreement (koopovereenkomst).
Get a mortgage
Your mortgage (hypotheek) will be arranged as soon as the provisional sale contract is signed. However, it is important to discuss mortgage terms with your financial advisor before even making a bid on a house.
Find a notary
You agent will be able to help you find the required notary (notaris) who will deal with all the legal paperwork related to your sale. A translator is also required to attend notary meetings in cases where one or more of the parties is not a Dutch citizen and must be booked in advance.
Allow for extra costs
What fees do you have to consider:
- Transfer tax (Overdrachtsbelasting): 2% of purchase price (not applicable for houses that are newly built
- If applicable: National Mortgage Guarantee for social housing: 1% of mortgage amount
- Valuation costs: (Taxatiekosten): €350 – €600
- Technical survey (Bouwkundige Keuring): €300-€350
Make sure you arrange the necessary insurance for your property. The Netherlands distinguishes between property insurance (Opstalverzekering) and content insurance (Inboedelverzekering).
Sort out taxes
Owning your own property mean you will be liable to pay annual property taxes (OZB Onroerende ZaakBelastingen) to the local municipality. If you are a Dutch tax payer, your mortgage fees and part of the interest payments will be a tax deduction (with current tax laws)
Want to know more?
If you would like more information on any aspects of buying your own property in the Netherlands, feel free to call us on +31 70 5118788 Or get in touch via the contact form.
How can we help you?
Mike De Gruijl
Why FVB De Boer?
- Local expertise
- Personal tailored advice
- Completely independent from financial providers
- Fast and efficient service
- Specialized in working with expats, non-residents and foreign income clients