The interest in housing in Europe is steadily growing. Countries with high legal protection and stable economies regularly come into the focus of foreign investors. The question of whether a foreigner can buy property in the Netherlands is becoming more common, especially among non-residents looking for a place to live, rent or invest.
Is it possible for a foreigner to buy real estate in the Netherlands: the legal basis
Before making a transaction, it is important to clearly understand that the country’s legislation does not impose strict restrictions. The answer to the question of whether it is possible for a foreigner to buy property in the Netherlands is yes. The transaction is allowed for both EU citizens and residents of other countries.
Differences:
EU citizens execute the transaction according to the standard procedure.
Non-residents with non-EU citizenship participate under the same conditions, but with additional requirements for verifying the source of funds and sometimes for visa status.
The restrictions do not apply to the purchase itself, but to certain categories of real estate, for example, some municipal programs or a social fund.
What you can buy: objects, types, format of property
The Netherlands offers a variety of segments. Housing is available for personal ownership without land lease or temporary rights. A foreigner acquires an object with the right of full registration in the cadastre.
Popular places:
- A city apartment.
- A house in the suburbs.
- Apartments in new residential complexes.
- Land for building.
- A buy-to-let facility.
Is it possible for a foreigner to buy a house in the Netherlands? Yes. You can purchase a private property, a townhouse, a villa. The country does not require local registration to complete the transaction.
Transaction features: step-by-step algorithm
The purchase process is subject to general rules and does not require a special status. The transaction is accompanied by a notary, the object is registered in the state register, and the contract sets out the terms of the transfer of rights.
The sequence of actions:
Choosing an object and offering a price.
Signing of a preliminary agreement.
Making a deposit (usually 10%).
Legal review of the facility.
Preparation and signing of the basic contract with a notary.
Transfer of ownership and registration.
This procedure for buying real estate in the Netherlands for foreigners follows a transparent, proven algorithm and protects both sides.
Is it possible for a foreigner to buy real estate in the Netherlands on credit or mortgage?
Banks provide loans to non-residents, but under enhanced conditions. The main requirement is a stable income, a transparent source of funds, and a proven financial history.
Key conditions:
- Down payment: from 30%.
- Rate: higher by 1-1.5% compared to residents.
- Term: up to 30 years.
- Collateral: the property itself.
- Additional guarantees: surety, deposit.
Is it possible to buy a property in the Netherlands for a foreigner with a mortgage? Yes, but you will have to take into account higher costs and efforts to collect documents.
Cost list: what makes up the final amount
Any transaction requires not only the price of the object, but also the calculation of all related costs. Transparency is a key principle in the market.
Cost list:
The cost of the facility is by agreement of the parties.
Notary services — 1000-2500 euros.
Registration of the right — 100-200 euros.
The purchase tax is 2% for individuals, 8% for investments.
Agent’s services — 1-2% of the transaction amount.
Bank fees depend on the buyer’s country of origin.
Translations and assurances — from 200 euros, depending on the language and volume.
Restrictions for foreigners when buying property in the Netherlands
There are no formal prohibitions. But there are indirect restrictions that affect the choice and procedure.:
- Access to social real estate is limited.
- In some areas, there is a purchase priority for local residents.
- Financial verification is more stringent when capital originates from outside the EU.
- Difficulties in buying through offshore structures.
If the laws are followed and the transaction is clearly documented, there are no restrictions for foreigners.
Documents: complete set, translation, verification of compliance
In order to confirm the validity of the purchase, the buyer must collect an exhaustive package of documents. The law requires absolute transparency of the transaction. Even the best facilities lose their liquidity if the buyer is missing one of the critical points. A notary performs not only a technical but also a legal function. Verification concerns the identity of the buyer, the source of funds, and the property status of the facility. All documents must be submitted at least 3-5 business days before signing the main agreement. Any foreign document is accompanied by a translation into English or Dutch. The translation must be certified by a certified specialist (beëdigd vertaler). A simple certificate without a signature and seal does not work.
List of documents:
A foreign passport with an up-to-date visa or entry stamp.
Confirmation of the address of residence in the country of origin — utility bill, bank letter.
The source of funds declaration is a detailed description of the origin of capital, especially for amounts above 100,000 euros.
Income statement or tax return for the last 2 years.
A bank statement showing the movement of funds for 6 months.
The taxpayer’s INN or registration number (if it operates in the EU).
A written power of attorney, if the transaction is represented by an agent or attorney.
A mortgage agreement, if a loan is used.
Preliminary purchase agreement (if signed earlier).
Risks of incomplete documentation:
- Blocking the transaction.
- Notification to Financial Control.
- Freezing of funds on the account.
- Refusal to register ownership rights.
All forms are checked before the transfer of the advance payment. In case of doubt, the notary notifies the financial authorities.
The issue of taxes: fixed fees, estimates, income
The taxation system for the purchase of real estate includes several levels — federal, municipal and revenue. Is it possible to buy a property in the Netherlands for a foreigner without paying taxes? No. Any purchase is recorded in the tax base, regardless of nationality.
Property purchase tax
The fee is paid once upon transfer of ownership. The bid depends on the status of the buyer and the purpose of the purchase.:
- 2% — if the property is purchased as a primary residence;
- 8% — when buying for investment purposes or if there is no registration in the country.
The amount is paid to the notary’s account before signing the contract.
Annual Property Tax (WOZ)
The municipality calculates the tax based on the cadastral value of the property. The calculation is updated annually, taking into account market adjustments. Average rate: 0.04%-0.12% of the cost of the property. Example: an apartment worth 400,000 euros obliges the owner to pay 400-1200 euros annually.
Municipal fees
Monthly fees include area maintenance, garbage collection, sanitation, water supply, and local services. The average range is 40-90 euros per month.
Tax on rental income
If the property is rented out, the income is declared. The rate depends on the form of ownership:
- An individual is subject to the Box 3 category (asset tax).
- Company — is taxed as corporate income.
The percentage varies from 1.2% to 1.7% of the property’s value, depending on the ownership structure and rental rate.
Double taxation
If there is an agreement between the Netherlands and the country of citizenship, it is possible to offset the taxes paid. Most EU countries, as well as the United Kingdom, the United States, Switzerland and Canada have such an agreement.
Is it possible to buy a property in the Netherlands for a foreigner — resume
Is it possible to buy a property in the Netherlands for a foreigner: the rules remain one of the most transparent in Europe. The transaction is possible without restrictions on citizenship, and the procedure itself protects the rights of a non-resident. It is important to comply with the requirements for documents, take into account taxes and plan all expenses in advance.
Jordaan combines old architecture, cosy streets and modern restaurants. The average cost of housing is around 2000 euros for a small flat. It is one of the most prestigious neighbourhoods. Many artists, designers and entrepreneurs choose it after thinking about where to live in Amsterdam.
The best neighbourhood to live in Amsterdam depends on your budget, lifestyle and personal preferences. For those who love the hustle and bustle of the city, the Centre and De Pijp are ideal. Those looking for tranquillity and spacious flats should consider Amsterdam-Noord or Westerpark. For those who want to live in an upmarket neighbourhood with modern amenities, Overhoeks and Jordaan are ideal.
In addition to property tax in the Netherlands, every owner of a property is required to pay a number of municipal fees each year, the amount of which varies from locality to locality. Onroerendezaakbelasting (OZB) is a part of the fiscal burden that includes, among other things, mandatory fees. These fees are used to support the city’s infrastructure as well as to finance public utilities.
Property tax in the Netherlands requires careful calculation and planning. It is possible to reduce costs by challenging the WOZ, utilising exemptions and choosing the right property. Timely payment of fees and understanding of the taxation system can minimise risks and avoid penalties.