Netherlands Real Estate: A Guide to Renting or Buying Property as a Foreigner

Netherlands Real Estate: The Netherlands is a popular destination for expatriates and investors due to its stable economy, strong rental market, and high quality of life. Whether you’re looking to rent a home or purchase property, understanding the process and legal requirements as a foreigner is crucial. This guide provides an overview of how to rent or buy property in the Netherlands, the costs involved, and answers to frequently asked questions.

Renting Property in the Netherlands

1. Finding a Rental Property

Foreigners can rent property in the Netherlands through:

• Online Portals: Funda.nl, Pararius, Kamernet, and ExpatRentals.eu.
• Real Estate Agents: Dutch realtors (makelaars) help find rental properties for a fee.
• Social Housing vs. Private Rental Market:
  • Social housing is for low-income residents and has long waitlists.
  • Private rentals have no restrictions and are accessible to expats.

2. Rental Agreements

A rental contract in the Netherlands typically includes:

• Lease Duration: Usually 12 months (sometimes flexible).
• Security Deposit: Typically one to three months’ rent.
• Utilities: Check if water, gas, electricity, and internet are included.
• Furnished vs. Unfurnished: Some rentals are fully furnished, while others require tenants to provide their own appliances.

3. Rental Costs

Rental prices depend on location:

• Amsterdam: €1,500–€3,500/month for a one-bedroom apartment.
• Rotterdam: €1,200–€2,500/month.
• Utrecht & The Hague: €1,300–€2,800/month.
• Eindhoven & Other Cities: €900–€2,000/month.

Netherlands Real Estate: Buying Property in the Netherlands as a Foreigner

1. Can Foreigners Buy Property in the Netherlands?

Yes, foreigners can buy property in the Netherlands without restrictions. However:

• Non-EU residents may face stricter mortgage requirements.
• Having a Dutch bank account and a BSN number (citizen service number) can help with transactions.

2. Steps to Buying Property

A. Determine Budget and Mortgage Eligibility

• Dutch banks provide mortgages (hypotheken), but non-residents may need a higher down payment (up to 30%).
• Typical mortgage rates range from 4% to 5% (as of 2024).

B. Find a Property

• Use property websites like Funda.nl or hire a real estate agent.
• Consider factors like location, public transport, and future property value.

C. Make an Offer & Sign a Preliminary Contract

• Negotiations take place through the seller’s agent.
• A preliminary purchase contract (koopovereenkomst) is signed.
• A 10% deposit is required unless using a mortgage.

D. Mortgage & Notary Process

• If financing, apply for a mortgage with a Dutch bank.
• A notary (notaris) registers the property with the Kadaster (Dutch Land Registry).

E. Final Payment & Ownership Transfer

• Buyer pays taxes and legal fees.
• The notary transfers ownership and issues property deeds.

Netherlands Real Estate: Costs of Buying Property in the Netherlands

1. Additional Costs

• Transfer Tax: 2% of the property price.
• Notary Fees: €1,000–€3,000.
• Real Estate Agent Fees: 1%–2% of purchase price.
• Mortgage Advice Fees: €2,000–€3,000 (if applicable).

2. Average Property Prices (2024 Estimates)

• Amsterdam: €6,500–€10,000/m².
• Rotterdam: €4,000–€7,000/m².
• Utrecht: €5,000–€8,500/m².
• The Hague: €4,500–€7,500/m².

Frequently Asked Questions (FAQs)

1. Can I get a mortgage as a foreigner?

Yes, but non-EU citizens may need a higher down payment (20-30%). Dutch banks such as ABN AMRO and ING offer mortgages to expats.

2. Do I get residency if I buy property?

No, purchasing property does not automatically grant residency in the Netherlands. You must apply for a residence permit separately.

3. Is property in the Netherlands a good investment?

Yes, property values have steadily increased, and the rental market remains strong, especially in cities like Amsterdam, Utrecht, and Rotterdam.

4. What taxes do I need to pay as a property owner?

• Annual Property Tax (OZB): 0.1%–0.3% of the home’s value.
• Income Tax on Rental Income: If renting out the property.

5. How long does it take to buy property?

Typically 2–3 months, including mortgage approval and notary registration.

Conclusion

Renting or buying property in the Netherlands is relatively straightforward for foreigners, though understanding legal requirements and financial obligations is essential. Whether you’re looking for temporary accommodation or a long-term investment, working with local professionals can help streamline the process.

Meet An Expert

Meet with an expert today during our open office hours video calls. You will be able to ask any question you might have regarding visas, renting and buying property or just practical advice on moving, while in a group setting. It is 100% free and you can attend on your own schedule.