Top 10 Cities in the Netherlands with Affordable Real Estate: Where to Invest in 2025?

Mortgages in the Netherlands for foreigners have long ceased to be an exception. Financial institutions of the country regularly approve applications from non-residents, especially in Amsterdam, Rotterdam and other cities with an active business and educational environment. The reason is obvious – stable market, transparent mechanisms, fixed rates, high trust in borrowers. The government supports foreign capital, as it stimulates the economy and promotes the growth of investment activity. Banks not only approve transactions, but also adapt mortgage products to the international audience.

Mortgage eligibility: who can apply

Mortgages in the Netherlands for foreigners are available to citizens of EU and non-EU countries. The main condition is stable income and legal residence in the country. The presence of a residence permit speeds up the procedure, but is not mandatory.

A foreign borrower is eligible for a mortgage if:

• is officially employed in a company registered in the EU;

• receives income in euros or another stable currency;

• is registering property in the Netherlands in his own name;

• proves income by documenting 12-24 months of income;

• goes through a standard bank check.

Lack of citizenship does not reduce the chances if the basic requirements are met. It is important to understand: banks do not evaluate passports, but solvency, transparency of income and the purpose of the transaction.

Property loan in the Netherlands: types and terms

Financial organisations offer different formats. Mortgages in the Netherlands for foreigners include annuity and linear schemes. The first one implies fixed monthly payments, the second one – the amount decreases every year.

Terms:

• the standard period is 30 years;

• the average amount is between €150,000 and €500,000;

• minimum down payment – 10-20 %;

• possibility of early repayment – without penalties (within the limit).

The loan is most often issued for housing, and less often for commercial properties. At the same time, banks are willing to consider requests from freelancers, entrepreneurs, IT specialists and remote workers if regular income is confirmed.

Mortgage conditions in the Netherlands for foreigners: what influences the decision

Financial authorities consider several parameters at the same time. The level of risk is assessed through three key criteria: income, debt load and collateral.

Calculation formula:

• the permissible mortgage burden is not higher than 30-35% of net income;

• minimum rate – for income above 50,000 euros per year;

• коэффициент оценки объекта — 100 % рыночной стоимости;

• amortisation – compulsory from the first month.

The DTI (debt-to-income ratio) plays a crucial role. If debts on other loans exceed 10-15% of income, approval is questionable.

Documents for mortgage: preparation and verification

The paperwork package determines the speed and the outcome. To speed up the procedure, the borrower should collect the following documents for the mortgage:

1. Passport or residence permit.

2. Employer contract (or business statement).

3. A 12-month income statement.

4. Bank statement.

5. Tax Returns.

6. Proof of funds available for a down payment.

7. Contract for the purchase of the property.

8. Facility Assessment Report.

Financial advisors recommend having documents translated into English or Dutch and notarised. This speeds up bank due diligence and reduces the number of clarifying enquiries.

Mortgage interest rates in the Netherlands for foreigners: current figures

The rates are determined depending on the term, form of the loan and the borrower’s rating. Mortgage in the Netherlands for foreigners is formed according to the same principles as for citizens of the country.

Range of rates:

• fixed rates – from 3.1% to 4.5%;

• variable rates – from 2.8 per cent, but with upside risk;

• Hybrid schemes – combined 5-10 years ahead.

It is more favourable to choose fixed rates for 10-20 years, especially in times of market volatility. Some banks offer rates below 3 per cent if the customer deposits more than 30 per cent of the transaction amount.

Mandatory expenses: taxation and related charges

Mortgages in the Netherlands for foreigners are not limited to principal and interest payments. When buying a property, there are additional obligations that affect the final cost of ownership.

The financial burden is made up of:

• registration tax – 2% of the value of the object;

• the cost of notary services – 1,000-2,000 euros;

• bank commission – from 500 to 1,500 euros;

• real estate valuation – 400-700 euro;

• state registration of the mortgage – up to 500 euros;

• home and life insurance – 0.3-0.8 per cent of the amount per year.

All payments are fixed and transparent. The foreign buyer receives an estimate before the transaction and signs it together with the mortgage agreement. A special feature is the full inclusion of all costs in the legal part of the transaction, which minimises risks.

Main selection parameters

A mortgage in the Netherlands for foreigners requires the assessment of several aspects at once. To make the choice easier, you need to structure the process.

Type of property:

• flat in a new building (guaranteed quality, higher cost);

• house in a historical building (unique style, higher repair risks);

• investment studio (low entry threshold, stable demand).

Location:

• Amsterdam – high yields, maximum rates;

• Rotterdam – business centre, reasonable prices;

• The Hague – administrative area, stable demand;

• Utrecht is a student market, high tenant turnover;

• Leiden, Eindhoven are the new centres of technology.

Ownership Strategy:

• personal residence (long-term place fixation);

• renting out (passive income of 3-6% per annum);

• Resale in 5-10 years (capitalization of assets).

Type of mortgage:

• annuity (equal payments);

• linear (debt reduction is faster);

• combined (customisation for investment purposes).

Financial Parameters:

• down payment – minimum 10%, comfortably 30%;

• term – 30 years as standard, but intermediate terms are allowed;

• monthly load – not more than 35% of income;

• insurance is a must in any case.

Buying a property in the Netherlands with a mortgage: a real investor tool

The transition from renting to owning is a key stage in any expat’s life. A mortgage in the Netherlands for expatriates ensures the transition without excessive pressure and with clear mechanisms. Against the backdrop of high rental costs (€1,200-2,500 per month), even a basic loan becomes cost-effective.

Calculation:

• an object worth 400,000 euros;

• down payment – 80,000 (20 per cent);

• the loan term is 25 years;

• The interest rate is 3.3%;

• payment – ~1,800 euros per month (including insurance);

• average rent of a similar property – 2,100 euros.

The difference is clear: the purchase saves up to 300 euros monthly and gives capital gains in the future.

Risks and insurance: mandatory conditions

Each borrower takes out comprehensive insurance for the property. In case of natural disasters, fire or theft, the bank receives compensation and the owner receives protection of the investment.

Types of compulsory insurance:

• property (walls, roof, structure);

• civil liability (damage to third parties);

• life insurance (at the bank’s request);

• Loss of income insurance (optional, but beneficial).

Without insurance, the bank will not activate the contract. On average, the total cost of the policy is 600-1,200 euros per year.

Conclusion

A mortgage in the Netherlands for foreigners offers access to a stable market with transparent regulation and clear logic. Low interest rates, flexible repayment schemes and respect for non-residents make the process of buying a home a sound investment. The main thing is to clearly formulate the goal, calculate the possible load and approach the choice not as a purchase, but as a project with a long-term result.

The city of tulips attracts not only tourists, but also those who want to make it their new home. The unique combination of a progressive culture and a stable economy makes one think of relocating. The cost of living in Amsterdam in 2025 remains an issue that requires careful consideration. Let’s look at the real costs, benefits and challenges to see if it’s worth moving to the capital of the Netherlands.

Why does Amsterdam remain an attractive place to relocate?

The capital takes a leading position among European cities in terms of attractiveness for living. Amsterdam is characterised by its unique atmosphere, convenient location and opportunities for professional growth.

Global appeal

Amsterdam is considered one of the friendliest cities in the world due to its openness and multicultural environment. In 2025, the Netherlands continues to maintain its status as one of Europe’s most stable and innovative economies. GDP levels grew by 2.3% year-on-year, emphasising the robustness of the country’s financial system.

Amsterdam has become a centre for talent, investors and start-ups. It is home to Tesla’s European headquarters, the Science Park technology campus and many other global brands. Developed infrastructure and the availability of international flights make the location convenient for life and business. Many people move for education: local universities Vrije Universiteit Amsterdam and Universiteit van Amsterdam are in the top 100 world rankings.

Standard of living and social benefits: cost of living in Amsterdam

The city offers a high level of comfort: state social protection programmes provide free education for children, support for young families and access to advanced medical services. Although taxes in the country are quite high, this is justified by the quality of services provided.

Health care in the capital remains an example for other regions. The average cost of life insurance in Amsterdam is €125 per month, including a wide range of services from basic to specialised medical care. In 2025, the system will additionally include telemedicine consultations, making access to doctors even more convenient.

The city’s infrastructure is adapted for comfortable living: a convenient transport network, bicycle paths and affordable utilities. The cultural centre actively implements environmental innovations, such as free charging stations for electric cars.

Real costs: the cost of living in Amsterdam

To consider how affordable this city is to live in, it is important to understand the major cost categories.

What is included in the cost of renting a home?

Housing in the capital takes up the lion’s share of the budget. The cost of living in Amsterdam strongly depends on the neighbourhood. The city centre offers premium properties, where rent for a one-bedroom flat ranges from €1800-2200 per month. In more remote areas, such as Nieuw-West or Amsterdam Noord, you can find one and two-bedroom apartments for 1000-1300 euros.

The demand for studios and rooms in houses with shared facilities remains high. Young professionals and students choose these options to cut costs. Rental prices usually include only basic utilities. Gas, electricity and water costs can be €150-200 extra.

Cost of food and services: How much do you need per month to live in Amsterdam?

Grocery expenses in the city are significantly higher than in the regions. The average family spends about 400 euros a month on groceries. Most residents prefer to shop at Albert Heijn, Lidl or Jumbo supermarkets, where prices are relatively stable. For example, a litre of milk costs €1.1 and a kilo of chicken fillet costs €9. Prices in Amsterdam at local markets such as Dappermarkt may be lower, but this only applies to seasonal fruit and vegetables. Utilities are 200-250 euros per month for a standard flat. This figure includes electricity, heating and water.

How to reduce costs: tips

Amsterdam is known for its high cost of living, but even here you can live comfortably without overpaying. Choosing the right neighbourhood, using transport cards and finding discounts on groceries can help reduce overall costs.

Where is the best place to live to save money?

The choice of neighbourhood to live in has a direct impact on the cost of living in Amsterdam. The centre is known for its high rents, but the suburbs offer affordable options while maintaining convenient transport accessibility:

1. Amsterdam Noord is one of the most promising places for frugal residents. It is 30-40% cheaper to rent a flat here than in the centre. In recent years, the neighbourhood has been actively developing its infrastructure: new cafes, shops and cultural spaces have been opened. The Noord-Zuidlijn metro line and free ferries, which run every 10 minutes, provide a quick connection to the city centre.
2. Bijlmermeer offers affordable accommodation aimed at students and young professionals. Renting a room or a small flat starts from 800 euros per month. The neighbourhood is becoming increasingly popular due to the modernisation of the housing stock and the emergence of new public spaces.
3. Nieuw-West is ideal for families. The area is known for its green areas like Sloterpark and schools. Renting a one-bedroom flat here costs between 900 and 1200 euros. The location of the area is convenient for those who work outside the centre, as it is close to important transport hubs.

Each neighbourhood has its own characteristics, so the choice depends on individual priorities. For families, proximity to schools and parks is important; for students, transport accessibility and cafes are important. Housing on the outskirts of Amsterdam is a sensible cost-cutting solution for those who want to cut costs without sacrificing quality of life.

How do you save money on everyday expenses?

Daily spending forms a large part of the overall budget. Groceries, transport, entertainment and services require careful planning:

1. Lidl and Aldi supermarkets, as already mentioned, offer low prices for basic goods. These shops are suitable for those who want to cut costs while maintaining basic quality. Albert Heijn offers a wider range, but if you use the Bonuskaart loyalty programme, you can save up to 20% on certain products.

2. Transport costs in Amsterdam can be minimised by cycling. This mode of transport remains the most popular and economical. A second-hand bicycle costs 150-300 euros and annual maintenance costs less than 50 euros. The OV-chipkaart is the main transport card in the Netherlands, offering discounts for those who regularly use the metro, trams or buses. A monthly pass costs 90 euros, but is 40 per cent cheaper for students and pensioners.

3. The savings also extend to entertainment. The capital offers many free events such as festivals, outdoor concerts and open days at museums. Using apps such as Groupon, you can get discounts on excursions, cinema and restaurant tickets.

4. Other useful recommendations include the Too Good To Go app, which residents use to buy quality food from cafes and restaurants at a deep discount. Buying groceries in the evening in supermarkets also provides an opportunity to save up to 50% on expired goods.

Conclusion

The cost of living in Amsterdam remains high, but the benefits of the city outweigh the costs. For those looking for career opportunities, a high level of comfort and cultural diversity, moving to the Dutch capital is an excellent choice.