There are no foreign property ownership restrictions in the Netherlands. But until recently, it was difficult to get involved in the buy-to-let market in the Netherlands as an expat, unless you have cash to purchase a property. However, recently it has become possible for expats to obtain buy-to-let mortgages under certain conditions.
Who can qualify?
Dutch banks offer mortgages for expats in the Netherlands, even for those who have not stayed long in the country. The following conditions apply:
- expats must have spent at least three years living and working in the Netherlands.
- your minimum gross income should be 45.000 euros per year.
- EU nationality or residency conditions apply.
- private cash is required at all times. The bank will expect buyers to cover roughly 40/50 percent of the purchase price with their own cash.
Banks may also insist that the property is let out on a long-term basis only (no holiday lets or Airbnb), and you are more likely to get a mortgage for a property in one of the large cities in the Netherlands (i.e. Amsterdam, Rotterdam, The Hague and Utrecht) than elsewhere, as banks recognize that demand in these places is higher and the chance of the property being empty is therefore reduced.
A worthwhile investment?
Buying an apartment or house in the Netherlands for the purposes of letting can often be a good investment as, in addition to rental income, an increase in property value can be expected as well. However, there are other matters to consider such as tax consequences – a tax levy of 1.2% is due annually on the value of the apartment (minus the mortgage) – and the fact that tenants are not easy to evict in the Netherlands.
Want to know more?
How can we help you?
José de Boer
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
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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