Navigating the Dutch Housing Market: A Beginner’s Essential Handbook

Can expats get mortgages in the Netherlands?

Absolutely. While having a permanent contract makes it easier, there are options for those on shorter contracts or self-employed individuals. Even if you’re paid in a foreign currency, you may still qualify.

How much can I borrow?

Your borrowing capacity hinges on your income and whether you’re single or part of a couple. Utilizing the ABN Amro mortgage calculator will provide an estimate of your borrowing limit and projected monthly payments.

If you qualify for the 30% ruling tax benefit, your maximum mortgage amount will increase. For accurate information, consult a specialized mortgage advisor.

You can also secure additional funds by purchasing an energy-efficient property or committing to energy-saving investments in a low-energy labeled home.

How much personal funds do I need?

In principle, you can borrow up to 100% of the property value, necessitating savings to cover other essential expenses like taxes, surveys, and notary fees—roughly 6% of the purchase price, known in Dutch as “kosten koper” or buyer’s costs.

Some costs, such as notary fees and mortgage advisor fees, are tax-deductible, while others like property transfer tax and estate agent fees are not. However, if you’re under 35 and it’s your first home priced under €510,000, you’re exempt from property transfer tax, which is typically 2% of the purchase price.

How do Dutch mortgages function?

The Dutch mortgage market offers various types of mortgages, but only annuity and linear mortgages allow for interest deduction from taxes. These mortgages combine interest payments with loan repayment.

Mortgages typically span 30 years but can be shorter, with options to fix the interest rate for one, five, 10, or 20 years, impacting monthly payments. ABN AMRO also provides a slightly lower interest rate for properties with at least a B energy label.

How does tax relief on mortgage interest payments work?

With annuity or linear mortgages, you can deduct mortgage interest payments from tax for up to 30 years, provided you reside in the property. The tax office handles calculations, offering refunds monthly or annually.

Though mortgage interest tax relief is gradually reduced, in 2024, the deductible rate is 36.97%, resulting in roughly one-third of paid interest refunded.

What other expenses do Dutch homeowners incur?

Monthly contributions to the owner’s association are necessary for homeowners in larger complexes, covering maintenance and property management costs. Local authority taxes (OZB) are based on property value and contribute to local services.

Eigenwoningforfait, or “own home forfeit,” is an asset tax dependent on property value and mortgage debt size, managed by tax advisors due to its complexity.

Is it worthwhile?

While buying a house may seem complex and costly, it doesn’t have to be. Experienced mortgage advisors, especially those assisting expats, can simplify the process. ABN Amro offers informative online webinars in English or free, no-obligation orientation meetings with experts to address any queries.