The process of real estate purchase in the Netherlands usually takes up to three months. You must keep in mind that the buyer generally pays costs but some of them are not are tax-deductible. Usually, six percent above the initial amount should be kept aside to cover all the encountered expenses.
| Quick Facts | |
|---|---|
| Dutch real estate market – overview | The real estate market has experienced significant volatility in recent years, but growth expectations for the upcoming years remain positive |
|
Where to search for properties to buy in Netherlands |
Real estate agencies, online property portals, newspaper ads, auctions, real estate fairs and trade shows, etc. |
|
Residence permit required (YES/NO) |
NO, foreigners can buy property in Netherlands without a residence permit, even if they are a non-EU citizen |
| Process |
The real estate agent can help find suitable properties, arrange viewings, negotiate with owners for a fair price, and issue a purchase deed; Once a verbal agreement is reached, the agent prepares a purchase deed that includes transaction details and conditions; A civil law attorney in the Netherlands receives the purchase deed and ensures all conditions are met; Once both parties sign the written statement and the necessary costs are paid, a transfer contract is signed. |
| Mortgages |
If you are considering purchasing a Dutch real estate property, you can explore the option of obtaining a mortgage to finance the purchase; The maximum mortgage you can request is up to five times your salary and you need a residence permit and be full-time employed to obtain a mortgage in Netherlands. |
| Overview on the properties for sale in Amsterdam |
Central apartments for sale in Amsterdam typically cost around 1 million euros; They can cost up to 8,500 euros per square meter; Amsterdam’s City Center is a desirable area with premium properties; You can contact our Dutch lawyers for more details about Amsterdam apartments for sale. |
| Types of properties available |
Terraced houses, detached houses, semi-detached houses, apartments, houseboats |
| Real estate due diligence |
Conducting real estate due diligence involves acquiring and evaluating information on a specific property, including legal, technical, and financial aspects |
| Necessary documents for buying real estate in Netherlands |
Sale/Purchase agreement, Transfer agreements, financial statements, information on the Land Registry, insurance coverage, etc. |
| Tenant eviction laws and regulations | Resolution of conflicts between landlords and tenants, including matters such as eviction, is handled through the national Rent Tribunal |
| Must contact the Land Registry (YES/NO) |
YES, when someone wants to transfer the ownership of a property, he/she must contact the Land Registry |
| What is the leasehold arrangement |
In the Dutch real estate market, some properties are sold without including the land they’re built on, under a leasehold arrangement |
| Fees and taxes |
Transfer tax (2% of purchase price), notary fees, real estate agent commission, bank guarantee, valuation report, etc. |
| Advantages of buying real estate in the Netherlands |
You may be eligible for tax deductions on the interest you pay on your mortgage; When buying a home in Netherlands, you can potentially borrow up to 100% of the property’s value; When you sell the property, you don’t have to pay capital gains tax on any profit you make from the sale. |
| Assistance for purchasing a property in Netherlands (YES/NO) | YES, our Dutch law firm handles matters regarding the real estate market in Netherlands |
| Physical presence required (YES/NO) |
NO, our lawyers can handle the transaction on your behalf. |
|
Legal framework for real estate |
– Dutch Civil Code (Burgerlijk Wetboek), – Land Registry Act (Kadasterwet) |
|
Property tax in Netherlands |
Depends on the property’s value, which will be evaluated annually by the local government. |
| Dutch residency/citizenship by investment (YES/NO) |
NO, our attorneys can help you obtain residency/citizenship through other means. |
| Local bank account required |
Recommended for facilitating property transactions |
| Deposit |
Generally 10% of the purchase price |
| Due diligence |
Our law firm recommends due diligence on the property to check for any potential financial or legal issues. |
| Land registry excerpt – characteristics |
Provides details about a property’s size, ownership, legal claims, etc. |
| Insurance |
Not mandatory, but recommended |
| Assistance schemes and loans |
– National Mortgage Guarantee, – Koopgarant Scheme |
| Property restrictions |
None |
| Constructing a house |
We can help you obtain the necessary permits. |
| Tax number required to buy property (YES/NO) |
YES |
| Content of property contract |
– name of buyer and seller, – purchase price, – property details, – date of contract completion, etc. |
| Additional services |
– VAT registration, – company formation, – trademark registration, – debt collection, etc. |
Table of Contents
Process of Dutch real estate purchase
The Makelaar (Dutch real estate agent) will handle all the steps necessary before buying a real estate in the Netherlands such as finding the appropriate properties, arranging viewings, talking with the owners in order to convince them to ask for a fair price.
Once a verbal agreement was reached, the makelaar is issuing a purchase deed containing the details of the transaction and the conditions of the acquisition. In maximum 3 days from signing it, the buyer can change his mind but after this period, if deciding to drop the transaction, he must pay a fee. Just like in the case of an Slovenian attorney, a civil law attorney from Netherlands is receiving this deed and makes sure that all the conditions are met. A deposit of maximum 10% of the purchase is held by a notary until completion of the sale.
The Land Registry is asked regarding any existing mortgages on the endorsed property by the notary who will issue a document of transfer signed by him/her, by the buyer and by the seller. The buyer must keep in mind that there are several commissions and taxes (around 10-12% of the purchase price covering real estate agent and notary fees, land registry fees and a property transfer tax) payable.
The documents related to the real estate purchase must be stated in Dutch, but it is advisable to have them also in the foreign country’s language to know exactly what you are signing.
When the written statement is signed by both parties and the amounts necessary to cover the costs are paid a transfer contract is signed and the notaries inform the Land Registry regarding the transaction and the new owners.
Mortgages when buying a property in Netherlands
When you are trying to find the best solution in order to purchase a Dutch Real Estate, you might consider asking for a mortgage. In order to request one up to five times your salary you must consider that the maximum mortgage obtainable is 106 percent of purchase price, you must have a permanent residence permit (certain exemptions are granted to some nationalities or individuals performing in a certain field of the economy), you are in full-time employment (or if you are self-employed a prove that there are certified accounts for the last three years and forecasts for the following year are available). Mortgages are usually arranged for a term of either twenty or thirty years, depending on the agreed conditions.
Leasehold or ‘erfpacht’. A characteristic of the Dutch real estate market is that certain properties (the number of it increases every year) are sold but not the ground on which are build. For this, an annual rent is paid to the owner, which in certain cases can be the Dutch Government.
At the beginning of the process of real estate purchase in the Netherlands it is advisable to contact a specialized agency instead of contacting directly the owners. This way, you can have a trustworthy individual who’s familiar with the Dutch Specific and can ensure that you have maximum advantages from the action.
The real estate sector and housing costs in the Netherlands
If you’re considering buying a property in Netherlands, it’s essential to familiarize yourself with the Dutch housing market.
In the third quarter of 2022, the Dutch housing market experienced an annual increase in housing prices by 2%. The median house price in Amsterdam in 2022 is approximately 600,000EUR, or 6,700EUR per m². However, the price can vary depending on the size and location of the property.
Amsterdam apartments for sale in the center of the city cost around 1 million euros, with prices exceeding 8,500EUR per m². In Amstelveen, smaller houses are available for around 450,000EUR, with larger houses priced between 700,000EUR to 2 million euros.
Amsterdam’s City Center attracts many tourists and visitors. The area boasts premium properties, such as 17th-century canal houses, which can be utilized as commercial offices. If you’re looking for houses for sale in Amsterdam, please contact our real estate specialists. Our team of experienced Dutch lawyers can also offer valuable insight and guidance on selecting the ideal location for your business in Amsterdam.
Can foreigners buy property in the Netherlands?
Yes, foreigners can buy property in Netherlands. The country does not impose any restrictions on foreigners, whether residents or non-residents, buying real estate. However, you must reside and be registered in the Netherlands to obtain a mortgage.
Before buying a property in the Netherlands, be aware of the tenant eviction laws and regulations, which prioritize the rights of the tenant.
Amsterdam is an ideal location for foreigners to invest in real estate in the Netherlands, offering a diverse range of properties and a vibrant cultural scene, making it a popular choice for those seeking a new home in a cosmopolitan city. You can discuss the Amsterdam apartments for sale with our specialists.
The following short video summarizes the most important steps for property purchase:
Different types of properties available in the Netherlands
If you are decided to buy a house in Netherlands, but are unsure about which type of property to choose, you must know the country offers a great variety of housing options.
The most popular type of property in the Netherlands is the town or terraced house (rijtjeshuis), which is usually narrow and has three or more floors, front and back yards, and is connected to similar houses. Additionally, detached houses (vrijstaand), semi-detached houses (twee onder een kap), apartments (appartement), and houseboats (woonboot) are also popular property types.
These types of properties are also found in the country’s capital Amsterdam. However, apartments are the city’s most commonly built type of housing, given the limited available space. If you are interested in seeing some Amsterdam apartments for sale, please contact us. Our Dutch lawyers can also assist in navigating the legal processes to buy a property in Netherlands.
How to find the right property in Netherlands
There are various ways to search for houses to buy in Netherlands. You can browse online property portals or look in local newspapers and free property papers.
If you see a property that meets your requirements and is within your budget, it’s advisable to act promptly. To buy a property in Netherlands, particularly in a city like Amsterdam, it may be beneficial to seek assistance from a reputable real estate agent. It is also important to conduct a thorough due diligence process to ensure that the property is in good condition.
Get in contact with our specialists to browse the available houses for sale in Amsterdam that fit your needs and preferences. If you are interested in conducting due diligence, our law firm in Netherlands can take care of that as well.
Our attorneys in Netherlands can also offer insight into how you can obtain a residence permit and apply for mortgages in order to buy a house in Netherlands.
Of course it is advisable to make a research of the Dutch market and see exactly how it is different from the one from home. A detailed verification of the Dutch realities can save you from paying too much for a property or, more seriously, breaking the specific rules of Dutch real estate acquisition.
If you need other services in the Netherlands, such as debt collection, we can put you in touch with our experienced lawyer.
If it is not possible to be in person in Netherlands and to watch closely the process, it is advisable to hire a professional attorney specialized in such activities in order to best represent your interests. This is a common procedure in most European countries, like Switzerland for exemple, and its main purpose is to ensure that the Dutch regulations are not preventing you from staying in a real estate just bought.
Advantages of buying real estate in the Netherlands
A series of privileges are granted if you decide to move to the Netherlands. For instance, there are no interest payments on mortgages if you are a resident taxpayer or if the property is used as the primary residence. Also the following costs are deductible: the costs to conclude the contract, the commission for the bank and the valuation report (which is asked by the bank) and the notary costs related to the mortgage. There is no capital gains tax so any increase in the value of your house is not taxable.
If you’re considering buying a property in the Netherlands, you might find the following data and statistics about the Dutch real estate market interesting and informative:
- In the second quarter of 2022, the average price of a house sold in the Netherlands was 448,000EUR;
- According to Statistics Netherlands, In the province of Noord-Holland, where the country’s capital is located, house prices rose significantly in 2021 by 15.5%. Please discuss with our Dutch lawyers to find the best houses for sale in Amsterdam that fit your budget;
- Properties located in the Bijlmer (Zuidoost area) are cheaper than the rest of the country, with prices starting at around 250,000EUR;
- The average price of existing homes in Rotterdam rose significantly by 18.4% in 2021, reaching 364,018EUR;
- There were over 58,000 apartments sold in the Netherlands in 2021.
If you have already purchased a property with your spouse, we can help you divide it in case of divorce in Netherlands.
Our team can not only help you with real estate transactions and related matters, we will also assist interested companies with VAT registration in Netherlands. The country has no minimum registration threshold, meaning that all companies are required to register irrespective of their annual turnover. Our team will answer questions not only about registration, but also about VAT filing and payment.
If you want to open a company in another jurisdiction, such as Singapore, you can receive more details about the Singapore company formation process from our partners. In case you are interested in setting up a limited company in Ireland, we canput you in touch with our affiliates from Ireland.