Taxes & Costs of buying a house in the Netherlands
› Transfer tax (Overdrachtsbelasting)
- 6% of the purchase price
- Note that transfer tax is reduced to 2% until June 2012
- Not negotiable
› Pre-sale agreement (Koopevereenkomst)
- 0,3% (plus BTW) of the purchase price
- Rarely negotiable
› Transfer contract (Akte van levering)
- 0,3% (plus BTW) of the purchase price
- Definitely negotiable
› Mortgage arranging cost (Afsluitprovisie)
- 1% of the mortgage or
- 1,2% (plus BTW) of the purchase price
› Mortgage contract (Hypotheekakte)
- 0,15% (plus BTW) of the purchase price
- Tax deductible
› Estate agent fee (Makelaarscourtage)
- 2% (plus BTW) of the purchase price
- Applicable only if you specifically asked the agent to find a house for you
› Valuation (Taxatierapport)
- 0,2% (plus BTW) of the purchase price
- Tax deductible and negotiable
› Deemed rental value (Eigenwoningforfait)
- 0,8% of the WOZ value (determined by the government)
Tax implications
› Mortgage interest payments are tax deductible as long as the property / house is to be used as the main residence for a maximum of 30 years.
› Tax deductions automatically disappear if you decide to leave the country but continue to own the property. As a non-resident taxpayer, you will not enjoy tax deductible mortgage interest payments so make sure the rent you receive covers both costs and interest.
› Increases in the value of the house are tax-free as long as it is used as the main residence (no capital gains tax).
› The 30% ruling may raise your chances of getting an appealing mortgage deal.
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