First, it's important to differentiate between these two terms, as the requirements for each group can vary:
In the Netherlands, freelancers are known as ZZP'ers (zelfstandige zonder personeel, meaning "independent with no employees"). These self-employed professionals work independently, not as employees. Freelancers usually work based on a long or short-term contract with their clients. Typically, they run their businesses as an eenmanszaak, a one-person business structure.
In the Netherlands, entrepreneurs who operate a private limited company are known as BV owners. A B.V. (Besloten Vennootschap) is a legal structure that self-employed individuals can choose for their business.
Several factors are important when applying for a mortgage as a freelancer, including income, job security, and future expectations. To qualify for a mortgage, you need at least 12 months of activity in your company and to have been registered at the Kamer van Koophandel (KvK), the Dutch Chamber of Commerce, for at least 12 months. The key requirement, however, is income history.
Determining income for freelancers is not as straightforward as determining income from employment. It is based on your average income over the previous three years. If your company has not been around for three years yet, your previous income from employment may also be taken into account.
Depending on the mortgage provider, your specific situation, and your employment / self-employment history, your options to get a mortgage as a freelancer may be more extensive than you realise.
To apply for a mortgage as a freelancer, you need to provide the following documents to a mortgage lender:
The key requirement for beginning your mortgage application as an entrepreneur is providing annual reports showing the turnover for the past three years for each company you own. In addition to this, you also need to provide the following documents to the mortgage lender, for each company you own:
If you are new to self-employment, that doesn't necessarily mean you won't qualify for a mortgage. Each bank has different requirements, so it’s a good idea to consult with a mortgage advisor. They can help by reviewing your information and negotiating with lenders. The final decision depends on the lender's policies.
A mortgage advisor can help you with the following things: