What is luxury real estate and is it worth investing in it?

Moving to another country is a significant step that requires not only careful preparation of suitcases and visa processing, but also a deep understanding of the legal aspects. Any long-term stay abroad begins with a choice between two key legal statuses: temporary residence permit (residence permit) and permanent residence (permanent residence). Both options provide an opportunity to legally live and work in a new country, but are governed by different rules.

The differences between a residence permit and permanent residence — what are they? This is not just a formality in the documents. These are fundamental differences in your rights, stability, level of responsibility and control by the state. This choice determines not only the legitimacy of your stay, but also the opportunity to build a fulfilling future without restrictions.

Differences between a residence permit and permanent residence: the legal basis

It may seem that residence permits and permanent residence provide a similar starting point — the opportunity to live and work abroad. However, their legal basis is fundamentally different: a residence permit is focused on a specific purpose of stay, whereas permanent residence emphasizes the status of a full-fledged member of society.

A residence permit is issued for a strictly defined period of time and is always linked to a specific reason: work, study, family reunification, business. Any change in these conditions may require an extension of the residence permit, a change in its type, or even cancellation. This means constant dependence on external factors and the need to regularly confirm the validity of your stay.

Permanent residence, on the contrary, frees you from such a binding. It does not depend on a specific employer or educational institution, does not require regular confirmation every few months, and is usually issued indefinitely or for a very long period with minimal conditions for renewal. Permanent residence confirms your right to be a full-fledged part of society, providing much greater freedom and stability.

Labor market opportunities: the difference between a residence permit and permanent residence

The rights granted by each status vary greatly in their depth, and this is especially noticeable in practice. The differences between a residence permit and permanent residence are most obvious in the field of employment and social life.

If you have a residence permit, your opportunities in the labor market may be significantly limited. For example, a work residence permit often does not allow you to open your own sole proprietorship or engage in freelancing, while a student’s residence permit may limit or prohibit work hours altogether. Access to most social benefits and government support programs with a residence permit is also limited.

Permanent residence, on the contrary, removes these restrictions. With it, you can:

• Freely change employers without the need to re-issue documents.
• Move from one region to another without losing your status.
• Open your own business (sole proprietor, LLC, etc.) without additional permits.
• Apply for social benefits and participate in government support programs on an equal basis with the citizens of the country.

Permanent residence provides much greater flexibility and independence in professional activities.

Your status in crisis: sustainability of residence permit and permanent residence

The migration path is rarely completely smooth. Losing your job, changing your life plans, or having to move to another city can all jeopardize your temporary status. It is at such moments that the differences between a residence permit and permanent residence are especially acute.

A residence permit is a status that depends on the stability of external circumstances. If the reason for its issuance (for example, a work contract or university admission) disappears, you risk losing the right to stay in the country and being forced to leave it.

Permanent residence creates internal stability. It guarantees the preservation of your rights even in the event of a sudden change in circumstances (for example, job loss or divorce). This status protects you from having to leave the country immediately and allows you to make long-term plans: buy real estate, invest, get a mortgage, without fear for your future.

Path to citizenship and integration: differences between a residence permit and permanent residence

For many immigrants, the ultimate goal is to obtain citizenship of a new country. The path to a passport often goes through obtaining permanent residence.

The period of stay on a residence permit is rarely fully taken into account when calculating the period required for naturalization. It is often necessary to obtain permanent residence first, and only after that the countdown for obtaining citizenship begins.

The period of permanent residence is almost always taken into account without reservations when calculating the deadline for applying for citizenship. This greatly simplifies the procedure, eliminates delays, and minimizes the risk of failure. In some countries (for example, in the Netherlands or Spain) This can mean the difference between waiting 10 years and being able to apply for citizenship within 5 years of obtaining permanent residence.

Comparison of key characteristics: Residence permit vs permanent residence

For clarity, let’s present the differences between a residence permit and permanent residence in a convenient table.:

How status differences affect a migrant’s life: let’s look at examples

Formally, both statuses give the right to legal residence, but in practice, the differences between a residence permit and permanent residence form completely different life scenarios. A residence permit makes your stay dependent on external factors that can change at any time, while permanent residence gives you independence from the constant need to confirm the reason for staying in the country.

One of the most striking examples is an entrepreneur in the Netherlands. If you have a residence permit based on doing business, you will usually have to prove the economic viability of your project every year. In case of losses, a temporary decrease in income or a drop in demand, the residence permit may not be extended. Even short-term difficulties, such as market changes or rising costs, are fraught with consequences for your status. If you have permanent residence, there are no such bureaucratic obligations: your business can develop without constant bureaucratic pressure, even during unstable periods.

The second example is a family in Spain. A residence permit issued on the basis of family reunification is often linked to a specific region (autonomous region). To move to another part of the country, a new residence permit may be required, which entails additional bureaucracy and time costs. There are no such regional restrictions on permanent residence, which gives freedom to choose a place of residence and work throughout the country.

When to choose permanent residence, and when to choose a residence permit?

The right choice depends on your goals, planning horizon, and level of confidence in your future in a new country. The differences between a residence permit and permanent residence show that these statuses do not compete, but correspond to different life strategies.

If your goal is a short—term stay with the possibility of returning to your homeland, then a residence permit makes sense. It is ideal for:

1. Academic training programs.
2. Time-limited work contracts or internships.
3. The first year of adaptation in a new country, especially in countries with relatively lenient visa conditions.

A permanent residence permit should be chosen when planning a long-term stay abroad and striving for full integration. This status is preferred for those who:

1. He plans to conduct business without restrictions and bureaucratic red tape.
2. He wants to provide children with access to full-fledged education on an equal basis with citizens.
3. Needs stable access to medical care without restrictions.
4. I intend to purchase real estate and finally gain a foothold in the country.
5. Considers the possibility of naturalization and obtaining citizenship in the future.

Permanent residence removes most of the bureaucratic barriers, frees you from frequent inspections and creates space for confident long-term planning. Unlike a residence permit, it allows you to change the direction of your life (for example, change your profession or move) without the risk of losing your legal status.

If your immigration scenario involves moving the whole family, making serious investments in housing, or registering your own company, it makes sense to immediately focus on obtaining a permanent residence permit. This will save years of waiting, reduce the number of requests to immigration services and minimize dependence on short-term circumstances.

Conclusion

The differences between a residence permit and permanent residence lie much deeper than just the validity period of the document. They determine how a person will live in a new country: temporarily, with constant consideration for conditions and restrictions, or stably, with broad prospects for the future. Making a conscious choice between these two statuses is not just a bureaucratic procedure, but a strategic decision that will affect every aspect of your life abroad.

Buying a property in the Netherlands in 2025 requires accurate calculations and an understanding of the law. Superficial schemes and “willy-nilly” do not work here. Holland sets high standards for both properties and buyers. Most mistakes are made before the contract is signed – that’s when money, time and chances are lost.

Prices: figures that do not deceive

Buying property in the Netherlands starts with a sober look at prices. In 2025, the average cost of housing in Amsterdam reached €6,550 per m². In Utrecht it is €5,100 and in Rotterdam it is around €4,700. Houses in the countryside are cheaper, but they are also less liquid.

New objects are offered at fixed prices – without bidding, but with mandatory participation in lotteries and tenders. On the secondary market the situation is more tense. Here, owners raise the price by 5-10% of the market price, focusing on the demand from foreigners. This is especially strong in areas with tourist infrastructure.

Buying property in the Netherlands: conditions

Foreigners can buy any type of property – a house, a flat or a plot of land. But mortgages are granted only if you have a residence permit or EU income. The bank will ask for proof of employment, tax history, credit rating and a deposit of 20-30%.

The transaction is formalised by a notary – not a broker. He checks the documents, formalises the transfer of ownership and registers the transaction in the Kadaster register.

Transaction order: steps, no margin for error

Buying a property in the Netherlands follows a strict procedure. It includes:

1. Finding and verifying an object. A professional broker analyses the market offers, checks legal cleanliness, communications, status of land and building permits.
2. Signing a preliminary contract. The document fixes the price, terms and obligations of the parties. A deposit – 10% of the value.
3. Final signing at the notary’s office. The notary checks all documents, transfers the funds to the seller, formalises the transfer of ownership and sends the data to the registration chamber.
4. Property registration. Kadaster enters the new owner into the register. From this moment on, the status of owner is acquired.

All stages are strictly regulated and legally protected. This approach minimises risks and guarantees the transparency of the transaction at every step.

Taxes and expenses: count to the last euro

Buying a property in the Netherlands comes with several mandatory costs. One of the main ones is the transfer tax (Overdrachtsbelasting). In 2025, the rate is 2% for residential properties and 10.4% for non-residential properties.

Additionally:

• Notary services: €1,000-€2,000;
• registration and legal support: €800-€1,500;
• brokerage commission: 1-2% of the value.

Total costs can be as high as 5-8% of the value of the property.

What not to ignore when buying a property in the Netherlands

Buying a property in the Netherlands entails a number of responsibilities. The owner pays an annual property tax (Onroerendezaakbelasting – OZB) as well as utility and municipal fees.

The maintenance of the dwelling requires compliance with building and technical regulations. In case of redevelopment, it must be approved by the municipality. Fines of up to €25,000 are provided for violations.

Investments: calculation, not emotion

Property in the Netherlands brings a stable yield – on average 3.5-5% per annum, especially when renting in Amsterdam, Utrecht and Haarlem. Studios and “two-bedrooms” are in demand – they are quickly rented by students and young professionals.

Demand is consistently higher than supply, especially in areas with good transport and educational infrastructure. It is important to take into account: rent is strictly regulated, the contract is for at least one year, indexation is limited, and penalties for violations are possible.

Immigration and residence permit

Buying a property in the Netherlands does not entitle you to a residence permit. The law does not provide for benefits in the presence of property. Ownership status can be a plus when applying for a visa on other grounds: business, startup, work.

Immigration requires legal income, contract, health insurance and integration. Only after several years of legal residence does one become eligible for permanent residence.

How to buy property in the Netherlands

Buying a home is not a spontaneous process. It requires analysis, preparation, and consideration of dozens of factors. A simple list helps keep you focused:

Step-by-step instructions:

1. Determine budget and region.
2. Evaluate goals: living, renting, investing.
3. Contact a licensed broker.
4. Check the object: technical condition, documents.
5. Sign the preliminary contract.
6. To post bail.
7. To be notarised.
8. Complete your registration with Kadaster.
9. Calculate all taxes and fees.
10. To record the rights and obligations of the owner.

Buying property in the Netherlands: restrictions

Purchasing a home is open to non-EU citizens, but with a number of nuances. Many cities have an opkoopbescherming rule – a ban on renting for the first 4 years after purchase. This helps protect the market from speculation. In Amsterdam and Rotterdam new projects can include quotas for sale only to residents – without local registration the transaction cannot be carried out.

Foreigners are not eligible for subsidies and pay all taxes and services in full. At the same time, there are no restrictions on land acquisition: both building plots and fully owned agricultural land are available.

Object types

Buying property in the Netherlands covers a wide range of properties. The market includes:

1. Flats in apartment blocks are a common format in cities. The layout is standard, often without balconies. The average size is 65-85 m².
2. Tanhouses are two- and three-storey houses with a common wall, popular in suburbs. The price starts from €320,000.
3. Villas and detached houses are premium segment properties, often located outside of cities. Costs start from €650,000.
4. Building plots are a scarce commodity, especially near agglomerations. Municipalities sell such plots by agreement, with strict conditions for development.

The key to making the right choice is to match the purpose of the purchase with the location. A compact flat in the centre is suitable for renting. For living – a house in a quiet neighbourhood. For investment – a liquid object in a development zone.

Regional differences

The property market in the Netherlands differs significantly by region. Amsterdam is the most expensive and overheated: the price per m² exceeds €6,500, objects leave in 12 days. Utrecht and Haarlem are stable, but with less competition – €4,900-5,100/m². In Rotterdam and The Hague housing is more affordable, but there are rental restrictions and neighbourhoods with a high migration background.

Maastricht and Groningen offer stability and prices of up to €3,800/m², maintaining growth potential – both for living and investment for 5-7 years.

Leases and alternatives

Buying a property in the Netherlands is not always justified. Renting a flat costs €1,200-1,800/month, and the tenant does not have to pay for taxes, repairs, insurance and registration.

If the plan of residence – up to 3 years, renting is more favourable. If the term is 5 years or more, buying becomes reasonable, especially in view of rising prices and difficulties with mortgages.

Conclusion

Buying a property in the Netherlands in 2025 is an informed decision, not an emotion. The property must be fit for purpose: investment, residence or migration. With a clear strategy and proper design, the property becomes a stable asset rather than a burden.