Netherlands

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Check Eligibility
- Non-Residents: Foreigners, including non-EU nationals, are allowed to buy property in the Netherlands. There are no specific restrictions on the purchase of property by foreigners, although purchasing agricultural land or properties in certain rural areas may be more complicated.
- Financing: Non-residents can secure financing from Dutch banks, but they may be required to provide a larger down payment (typically 30% or more) and demonstrate stable income and financial stability.
Determine the Budget
- Budgeting: Consider the full cost of purchasing property, including the purchase price, notary fees, registration taxes, and other expenses such as property insurance, utilities, and maintenance costs.
- Mortgage: Dutch banks may offer mortgages to foreign buyers, but they typically lend up to 80% of the property's value, requiring buyers to cover the remaining 20% as a down payment.
Find a Property
- Online Search: Property search websites like Funda.nl and Jaap.nl offer extensive listings of properties for sale throughout the Netherlands. You can filter by location, price, property type, and more.
- Real Estate Agents: It’s recommended to work with a local real estate agent (makelaar) to assist with property searches and negotiations.
View the Property
- Inspections: It’s advisable to conduct a professional inspection of the property to assess its condition, particularly its structural integrity and the state of plumbing and electrical systems.
- Visiting the Property: If you cannot visit the Netherlands in person, consider hiring a representative or arranging a virtual tour to inspect the property.
Make an Offer
- Bidding: Once you have found a property, you will typically make an offer. In the Netherlands, the bidding process can sometimes be competitive, especially in high-demand areas. The buyer and seller may negotiate until an agreement is reached.
- Contract: After an agreement is made, the parties will sign a preliminary contract (koopovereenkomst). A deposit (usually around 10% of the purchase price) is typically required when signing this contract.
Complete Legal Formalities
- Notary Role: A notary (notaris) is required to complete the property sale in the Netherlands. The notary is responsible for ensuring that the sale is legally binding, verifying the property’s title, and preparing the final deed of transfer.
- Taxes and Fees: The Netherlands imposes a transfer tax (overdrachtsbelasting), which is typically 2% for residential properties. There may also be other notary fees and registration costs.
Register the Property
- Land Registry: After the notary completes the sale, the property must be registered in the Dutch Land Registry (Kadaster) to officially transfer ownership.
- Insurance: It’s advisable to obtain property insurance (woonhuisverzekering) to cover potential risks such as fire, theft, and natural disasters.
Move In
- Once the legal formalities and registration are completed, you can move into your new home in the Netherlands.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: Although not required, hiring a Dutch lawyer (advocaat) can be beneficial to ensure that all legal aspects of the transaction are handled correctly and to address any potential issues.
- Taxes and Fees: Be aware of transfer taxes, notary fees, and other costs associated with the property purchase process in the Netherlands.
ADDITIONAL NOTICES
- Notary Role: The notary (notaris) is responsible for overseeing the legal aspects of the sale and ensuring that the transaction is recorded in the Land Registry.
- Transfer Tax: The Netherlands charges a transfer tax, which is typically 2% for residential properties. This tax is payable by the buyer.
- Mortgage Financing: Dutch banks may offer mortgages to foreign buyers, but typically require a larger down payment (usually around 30%) and proof of stable income.

In the Netherlands, real estate taxes are regulated by both the central government and local municipalities. The key types of taxes related to real estate in the Netherlands include:

Property Ownership Tax

Real Estate Tax (Onroerendezaakbelasting - OZB): In the Netherlands, property ownership tax is imposed by municipalities and applies to both residential and commercial properties.

  • The tax rate is based on the assessed value of the property, known as the WOZ-waarde (Value on the Date of January 1st).
  • The rate is determined annually by each municipality, and rates typically range from 0.1% to 0.3% of the property’s WOZ value for residential properties, and slightly higher for commercial properties.
  • Property tax is paid annually, and the owner is responsible for payment.
Real Estate Transfer Tax

The real estate transfer tax applies when a property changes ownership, such as during a sale.

  • The standard tax rate is 2% of the purchase price or market value, whichever is higher, for residential properties.
  • For non-residential properties (commercial real estate), the tax rate is 6% of the purchase price or market value.
  • First-time homebuyers may benefit from an exemption from the real estate transfer tax for properties valued up to €400,000 (subject to certain conditions).
Capital Gains Tax on Real Estate

In the Netherlands, capital gains tax applies when a property is sold for a profit, though it is generally applicable only to commercial properties or properties held by businesses.

  • For individuals, if the property is sold for a profit, there is no capital gains tax for the sale of residential properties, as the profit is considered part of the personal wealth tax.
  • If the property is used for business purposes, the profit from the sale may be subject to income tax (part of the personal income tax system).
Inheritance and Gift Tax

The Netherlands has an inheritance and gift tax system that applies to the transfer of property through inheritance or gifting.

  • The tax rates range from 10% to 40%, depending on the value of the property and the relationship between the donor and recipient.
  • Close relatives such as children and spouses benefit from a reduced tax rate and higher exemptions.
  • If the inherited or gifted property is sold, capital gains tax may apply on the profit from the sale, depending on whether the property was used for business purposes.
Income Tax on Rental Income

If rental income is generated from real estate, it is subject to income tax in the Netherlands.

  • Rental income is taxed as part of the overall personal income tax system under Box 3 (tax on savings and investments).
  • Rental income is not taxed as a business income but is considered part of your taxable wealth. The tax rate for Box 3 is calculated based on the net value of your assets, with tax rates ranging from 0.59% to 1.71% depending on the total value of your assets.
  • Property owners can deduct certain expenses, such as maintenance costs, from rental income if the property is used for business purposes.
Municipal Taxes

In addition to national taxes, municipalities in the Netherlands may impose other local taxes or charges related to property ownership.

  • Local taxes may include charges for waste management, sewage, and public infrastructure maintenance, which can vary depending on the municipality.
Note: Tax rates and regulations can vary depending on specific circumstances and local municipalities. It is recommended to consult a local tax professional or check with the Dutch Tax Authority (Belastingdienst) for the most up-to-date and accurate information.
Official
Kingdom of the Netherlands
CIOC
NED
Subregion
Western Europe
Borders
BEL
DEU
Capital
Amsterdam
Area
41 850 km²
Population
16 656 000
Timezones
UTC+01:00
Phone
+31   
Currencies
Euro (EUR €)