The hidden costs of car ownership in the Netherlands (and how to avoid surprises)

You've just moved to the Netherlands for a two-year assignment. You buy a reliable used car for €15.000, thinking you've made a smart choice. 12 months later, between taxes, permits, inspections, and unexpected fees, you've spent an additional €7.000 (and that's before you include fuel or that minor fender repair). When it's time to sell, your car is worth just €12.000. Your transportation ended up costing €10.000.

For expats in the Netherlands, car ownership comes with various costs that dealers rarely mention, and Google doesn't always explain clearly. This article breaks down the most important hidden expenses you need to know about.

Before you even drive off the lot

Here are some hidden expenses that occur before you even drive off the car dealer’s lot:

BPM: The purchase tax you might not see coming

One of the biggest surprise costs is BPM, a one-time registration tax charged when a vehicle is first registered in the Netherlands, calculated primarily on CO2 emissions. For petrol and diesel vehicles, BPM ranges from €400 for low-emission cars up to €5.000-€15.000 for higher-emission models. Electric vehicles now face a fixed fee starting at €667.

Important to check: When browsing used cars online, always ask: "Is BPM already paid?" A car listed at €18.000 with unpaid BPM could actually cost you €22.000 once registered. 

Registration costs and the BSN requirement

Beyond BPM, expect to pay €50-€70 for license plates and approximately €35 for vehicle registration. The timeline can stretch to several weeks, and here's where expats hit another hurdle: you need a BSN (the Dutch equivalent of the social security number) to complete registration. You need a car to get settled, but you need to be settled before you can register a car. This timing can be challenging for newcomers.

The monthly drip: Ongoing costs that add up

Beware of the following monthly costs:

Road tax

In the Netherlands, you pay motor vehicle tax based on vehicle weight, fuel type, and which province you live in. This is a significant ongoing cost that can vary by hundreds of euros per year.

For a typical petrol car like a Volkswagen Golf, you're looking at €560-€680 annually, which breaks down to roughly €47-€57 per month. 

Diesel vehicles cost significantly more. Older diesel cars built before certain dates also face a "particulate matter surcharge", making their road tax approximately 15% higher.

Payment is quarterly or monthly via direct debit, and the Tax Administration automatically sends invoices once your vehicle is registered. 

Insurance: The expat premium

Dutch car insurance differs from most other countries: it insures the car, not the driver. You'll encounter three main levels:

• WA (third-party liability, €30-€60/month)
• WA+ (limited coverage, €50-€90/month)
• All-risk (comprehensive, €80-€150/month)

Without a Dutch driving history, expect to pay higher premiums. However, many insurers accept a transferred no-claims history from abroad with proper documentation. 

Driving with no hidden costs: Blankert Shortlease

The surprise bills nobody warns you about

Don’t let yourself be surprised by these costs:

APK: The annual inspection

Annual inspection is mandatory for cars from three to four years old, with inspection fees ranging from €20 to €70. Diesel vehicles typically cost €45-70 due to additional soot measurements.

If your car fails inspection, repairs are required before you can pass. Depending on what needs fixing, this can add €200-€2.000 to the cost.

Depreciation: The biggest ongoing cost

Depreciation affects every car owner but is often overlooked when calculating ownership costs. Dutch market conditions make this particularly relevant for short-term owners. New cars typically lose 15-25% of their value in the first year. Used cars continue depreciating at 10-15% annually for the first few years.

Example: A three-year-old car purchased for €18.000 and sold after 18 months might fetch €14.000-€15.000. That's €3.000-€4.000 in depreciation, or approximately €167-€222 per month. 

The exit: costs of getting out

Selling your car also comes with costs:

Understanding the resale process

When it's time to leave the Netherlands, selling your car requires several weeks for viewings and negotiations. Offers tend to be lower than expected, particularly when time is limited. Time pressure typically results in accepting substantially less than market value.

The real cost of "ownership"

Let's do the maths on that €15.000 car from our opening scenario:

• Purchase: €15.000
• BPM (if applicable): €2.000
• Insurance (12 months): €900
• Road tax (12 months): €650
• APK + minor repairs: €400
• Depreciation: €3.000
• Total spent: €21.950
• Selling price after one year: €12.000
• Net cost: €9.950 

That's over €800 per month, just to "own" a €15.000 car (and that's before any additional maintenance or repairs). 

Smart alternatives worth considering

Before committing to ownership, ask yourself:

• How long are you staying? If it's less than two years, ownership costs disproportionately impact you.
• How often do you actually need a car? For daily commuting or just weekend trips?
• Can you absorb a €5.000-€10.000 loss when you leave? Because that's the typical cost for short-term ownership.

For many expats, flexible mobility solutions offer a simpler alternative. Short-term leasing, car subscriptions, or rental arrangements tailored to temporary assignments can provide the transportation you need with fewer administrative requirements than ownership.

The hidden costs of car ownership in the Netherlands are real and substantial. Understanding them upfront helps you make an informed choice that fits your situation, whether that's buying, leasing, or choosing another option entirely.