Buying a house: Taxes, costs & fees

Buying a house: Taxes, costs & fees

Buying a house in the Netherlands is an important financial decision, especially for expats. There are many things to take into account in order to guarantee that it will be a smart investment.

Taxes, fees and costs for future homeowners

Here is a quick overview of the taxes, costs and fees involved when buying a house in the Netherlands:

Transfer tax (Overdrachtsbelasting)

  • 2% of the purchase price
  • Not negotiable

From January 1, 2021, people aged 18-35 who are buying their first property in the Netherlands will not have to pay the transfer tax. In 2023, the costs of this first property may not exceed 440.000 euros.

Bank guarantee (Bankgarantie waarborgsom)

  • 10% of the purchase price (by transfer or written bank guarantee)
  • Not negotiable

Transfer contract (De leveringsakte)

  • Around €450-€600

Mortgage advice (Hypotheekadvies)

  • Between €1500-€3500
  • Tax-deductible

Mortgage contract (Hypotheekakte)

  • Between €450-€650
  • Tax-deductible

Estate agent fee (Makelaarscourtage)

  • 1-2% (plus BTW) of the purchase price, if you asked the real estate agent to find a house for you

Valuation (Taxatierapport)

  • Between €400-€700
  • Tax-deductible 

Deemed rental value (Eigenwoningforfait)

  • In 2023, the deemed rental value for homes between 75.000 and 1.200.000 euros will be reduced to 0,35%. For homes above 1.200.000 euros, the percentage remains 2,35%.

Additional Costs (Kosten Koper)

  • All the additional costs that the homebuyer has to pay when purchasing a property, such as transfer tax and technical survey costs (around €425)

Possible house renovations

  • Perhaps your newly bought home was ready to be moved in from the get go, but often some home renovation work has to be done. Renovation costs can be high, so keep this in mind when making your budget.

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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