Buying a home in the Netherlands

A few things to take into account:

Tax Pro’s

Buying as opposed to renting may be beneficial tax-wise. The Dutch tax-system offers some tax benefits for homeowners. A few advantages to point out:

• As a homeowner you are allowed to deduct some expenses related to buying the house, such as the closure of the mortgage, mortgage advice and the valuation of the property.
• Mortgage tax relief: once you’ve bought your house and use it as your primary residence, the interest payments on the mortgage are tax-deductible. This can add up to quite an amount which you can arrange to be received either monthly in advance or annually.
• In some cases you’ll come across a property with ground lease – often the case in Amsterdam. In these cases the ground on which your property is built, remains property of the government. With ground lease you’ll obtain the right to use the ground. These lease holds are also tax deductible.
• The costs for closing a National Mortgage Guarantee (which will ensure you don’t borrow more money you can actually afford and will help you when things don’t go as planned financially) are also tax deductible.
• Expenses for registration at the Kadaster, land registry, as new owner of the property are tax deductible.
• When refinancing an existing mortgage you’ll be able to deduct the penalty interest.

Kosten koper: additional costs when buying a house

When buying a house the buyer is obliged to pay all additional costs related to the purchase. We call it ‘Kosten Koper or in short: ‘k.k.’. Usually the total additional costs amount to 6% of the price of the property. Your broker’s fee is not included in the kosten koper. The following expenses are included:

• Transfer tax (currently 2% of the value of the property if you buy it to live there yourself)
• Mortgage broker fee (tax deductible)
• Interpreter to accompany you at the settlement meeting at the notary
• All notary fees, including expenses for the deed of delivery and the mortgage contract
• Bouwkundig rapport: report on the architectural state of the property

Check out this page on the website of I Am Expat for more information on current costs, fees and taxes.

Vrij op naam: freehold

Occasionally you’ll come across properties ‘v.o.n.’ which stands for ‘vrij op naam’. These properties are freehold: the additional costs come at the expense of the seller instead of the buyer. This is usually the case with newly built properties.

National Mortgage Guarantee: Nationale Hypotheek Garantie (NHG)

It’s important to take out a mortgage that you can handle. For now, but also when things change. When taking out a National Mortgage Guarantee, you’ll be sure to get a mortgage that you can actually afford and you’ll be assured of a safety net once you don’t. The NHG will cover your mortgage when you can no longer afford it, but only if this happens due to specific circumstances including: unemployment, splitting up a relationship, death of a partner or becoming disabled. There are several conditions to be met in order to be eligible for the NHG. The price of the property is taken into account for example, as well as whether you will invest in energy saving measures. A mortgage consultant will be able to provide you with all the details.

Ready to get in touch with a financial advisor? We’ll connect you.

Read more & get in touch

Dual estate agent system

When visiting a home, you’ll meet a real estate agent who acts in favor of the current owners. He or she will suit their interests best. Naturally, these may not be your best interests.

Of course you can visit homes yourself but bringing your own real estate agent who acts in your best interests is a smart move. Especially when you’re not familiar with the neighbourhoods and the Dutch housing market, it’s good to have a specialized broker on your side. He or she will guide you through the process of finding a house, the bidding process, eventually closing the deal and getting you settled.

Certified Expat Broker

Good to know there are real estate agents specialized in assisting expats and internationals. The Amsterdam Real Estate Brokers Association has initiated the certifying of Expat Brokers in order to protect expats from dubious practices on the housing market and instead giving them the warmest and most professional welcome to the Netherlands and the Dutch housing market they deserve.

Certified Expat Brokers have in-depth knowledge of the housing market, are continuously educated and are required to take Business English classes and courses on cultural differences. They understand that moving abroad is a big step, one you don’t take lightly. A Certified Expat Broker goes the extra mile in order for you to feel at home.

Good to know: Isabelle Band is our certified expat broker in Amsterdam. She shares her expertise with all our colleagues on a daily basis making all of our real estate agents expat specialists. Do get in touch should you have any questions.

The Amsterdam Metropolitan area

While many internationals start looking for a home in Amsterdam, the Metropolitan area around Amsterdam is increasingly popular. Not only due to the high housing values but also due to the fact that places such as Haarlem, Heemstede and Hoofddorp have all the advantages of living outside of the big city (lots of greenery, close to the beach) whilst being easily accessible.