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
Pre-sale agreement deposit (Koopovereenkomst waarborgsom)
- 10% (plus BTW) of the purchase price
- Rarely negotiable
Transfer contract (De leveringsakte)
- 0,3% (plus BTW) of the purchase price
Mortgage arrangement cost (Hypotheekadvies)
- 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
- If you asked the real estate agent to find a house for you
- 0,2% (plus BTW) of the purchase price
- Tax deductible and negotiable
Deemed rental value (Eigenwoningforfait)
- From 0% to 0,7% of the WOZ value (determined by the government)
Additional Costs (Kosten Koper)
- All the additional costs that the homebuyer has to pay when purchasing a property (e.g. transfer tax)
- 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.