A Place to Live

Before buying or renting a house or apartment in the Netherlands, there are several things you should consider. This chapter offers you practical tips and useful information such as where to buy or rent, selecting an agent and negotiating the deal. This chapter also points out some of the consequences of your choice in terms of property taxes, waste collection taxes, sewerage taxes, etc., and the taxes or exemptions thereof surrounding importing your household goods.

The Housing Situation

For an expatriate, the housing situation in the Netherlands is generally favorable. There is a large variety of property to choose from although much depends on the area where you want to live. There is a good choice of rental properties in the so-called Randstad area (Rotterdam, The Hague, Amsterdam, Utrecht) in the western part of the country.

Rental prices in the Netherlands are high when compared to other parts of Europe, but are below those of other European capitals such as London or Paris, while the sales market is tight.

To Buy or to Rent

If you are considering staying in the Netherlands for a considerable period of time, it is wise to weigh the advantages of buying property rather than renting it. The costs of buying a house are approximately 10% of the purchase price and any additional costs, such as the cost of contractors, etc.

Real Estate Agent 

Whether you decide to rent or buy, it is advisable to use an agent who is a member of the Nederlandse Vereniging van Makelaars (NVM), the Dutch Association of Real Estate Agents. Basically every NVM agent has the same information available through the multiple listing system.

Housing intermediaries can also be found by contacting the Vereniging van Woningbemiddelaars (Association of Housing Intermediaries).

Renting: The Rental Contract 

In most large cities, including The Hague and Amsterdam, the contracts have been especially designed to meet the needs of expatriates and are in English, but some agents still use the standard NVM rental contract which is written in Dutch but includes an English translation.

Important for expatriates: your rental contract should include a so-called diplomatic clause, which gives you the possibility to terminate the contract by giving two full calendar months’ notice if you are transferred.

Buying: Purchase Deed
 
The (verbal) agreement to purchase the house is set down in writing in the purchase deed. Once this has been signed, the buyer has three days to think matters over and cancel the deal without repercussions. If you need to obtain a mortgage to finance the purchase, any purchase agreement should be made subject to financing.

Tax Consequences

Consult your tax advisor on the consequences of being a resident tax payer, a real or partial non-resident tax payer and, as the case may be, of the fact that you are benefiting from the 30%-ruling.

The most important reason to buy real estate – instead of renting it – is the fact that interest paid on a mortgage is fully deductible on your income tax return when you use the house as your principal place of residence. Aside from the interest, the expenses related to the mortgage (for example notary fee, registration fee, bank fee and appraisal fee) are also deductible.

Deemed Home Ownership Value (Eigenwoningforfait) 

Those who own a house have to report a certain related amount on their income tax return. This amount is a percentage of the value of the house, called the eigenwoningforfait. The value on which the eigenwoningforfait is based, also known as the WOZ-value, is the official value of the house and is determined by the municipality.

Taking Out a Mortgage 

To determine the most appropriate type of mortgage for you as an expat, your tax status must first be considered (keep in mind that mortgage interest is deductible IF your house is your principal place of residence).

Also remember that, when making your decision, whether or not you are benefiting from the 30%-ruling is of great importance!

Customs Duties 

If you transfer goods from a non-EU country to an EU-Member State (such as the Netherlands), you are subject to customs duties: VAT and other special taxes.

However, nearly all EU-Member States provide an exemption if the imported goods form part of your household or personal effects and they are transported as part of your change of fixed address. The exemption includes an exemption for VAT, customs duties, special taxes and other charges upon importation. Check with your tax advisor what conditions must be met in order to make use of this exemption.
For useful addresses and websites, please use the info-link button at the top of this page

More on these subjects can be found in The Holland Handbook 2010 - 2011