Can a foreigner buy property in Netherlands?
So, can expats buy property in the Netherlands? The answer is yes, you can! With the right financing and a little bit of knowledge about the local housing market, buying a property in the Netherlands can be a great investment for expats.
The short answer is yes. The Netherlands does not place any restrictions on the purchase of property by foreigners, whether resident or non-resident. However, to get a mortgage you must live and be registered in the Netherlands.
Residency Permit in the Netherlands
Buying a house in the Netherlands without having a residence permit is not an issue. Unfortunately, it is true that you do not automatically get a residence permit when you buy a property in the Netherlands.
The Netherlands has a very healthy property market, but it can be very competitive for buyers. You need to be on the ball at every step, and this means having the insider info on what it takes to succeed. If you're looking to buy a house or apartment in The Netherlands, there's a lot you need to know. But that's OK!
A Dutch mortgage has tangible financial advantages
If you buy a home and get a mortgage, you are entitled to a tax break derived by deducting your mortgage interest from your taxable income. In the Netherlands, mortgage interest rates are currently meagre, and in 2021 reached a historically low of 1.23%.
There are no restrictions placed on foreigners and non-Dutch residents buying property.
If a person is not a national of an EU country, Liechtenstein, Norway, Iceland or Switzerland, they can live in the Netherlands provided they meet certain conditions. And they need to hold a residence permit.
To qualify, the applicant must invest a minimum of €1,250,000 and ensure the investment adds value. The initial investor residence permit is valid for 3 years. If the investor still meets the program's requirements, the residence permit can then be extended for another 5 years.
- You meet the general requirements that apply to everyone.
- You have had a valid Dutch residence permit for at least 5 consecutive years. ...
- Only years from the age of 8 on count towards the 5-year period. ...
- You had your main residence in the Netherlands during the entire 5-year period.
You might be wondering: can I rent out my house in the Netherlands? Yes, you can. Buying and renting out a house is no problem if you comply with specific terms and conditions. If you already own a home and are looking for a profitable investment, you will come across specific rules.
How much does the average house cost in the Netherlands?
What is the average price of residential property in the Netherlands? In the second quarter of 2023, a single-family home cost approximately 434,000 euros.
The average sales price of a home in the Netherlands peaked in August 2022, followed by a decline in the following months. In September 2023, it cost on average over 422,000 euros to buy a home, down from 438,000 euros in the same month the year before.
Typically after arranging your mortgage, a deposit of 10% of the purchase price is required – if you don't have this saved, your mortgage adviser can arrange a bank guarantee.
The Netherlands has a high cost of living, which includes everything from accommodation, groceries, and services. On average, the cost of living in the Netherlands is 10.7% higher than in the UK. Owning a car is particularly expensive, with high road tax and expensive repair costs.
The availability and price of housing are both affected when all of these factors are combined with limited capacity. Also, many rental homes in the Netherlands are social housing with limited availability. The Netherlands rental market is improving, but demand is outpacing supply.
Prices for a one-room apartment in the city center range from 900 to 1,750 euros per month. In Delft or Utrecht - from 650 to 900 euros. Also, when planning a moving estimate, you should take into account preliminary expenses - a deposit, rent for one or two months, and current expenses.
If you plan on a longer residency, you will have to apply for a permit. Requirements will differ, depending on the reason for your stay. However, you should note the Netherlands has no specific option for retirees. So your pension income needs to be sustainable.
As a U.S. citizen you are most likely required to file U.S. taxes with the IRS even if you live abroad. For more information on paying taxes as a U.S. Citizen please see: The new FATCA FAQ on travel.state.gov or download the FATCA FAQ here (pdf 177 KB) The general Internal Revenue Services Page.
Expatriates in the Netherlands
Those who wish to move to the country will be pleased to know that retirement in the Netherlands for expats is very much possible. Americans, particularly, are allowed visa-free entry into the country for 90 days. Those who wish to stay longer must apply for a permit.
However, when you wish to emigrate or move to the Netherlands you are required to obtain a residence permit and, when this option becomes available to you, you can apply for a permanent residence permit. U.S. citizens who want to work in the Netherlands or simply live here are required to apply for a residence permit.
How hard is it for a US citizen to move to Netherlands?
Moving to the Netherlands is hard for foreigners as they must undergo a specific process of obtaining residency or citizenship. However, American expats who wish to move to the Netherlands can obtain a residence permit with an extra opportunity known as the DAFT visa.
| 1. Canada | 2. Australia | 3. Germany |
|---|---|---|
| 4. New Zealand | 5. Singapore | 6. Sweden |
| 7. Ireland | 8. Netherlands | 9. Costa Rica |
| 10. Malta |
- Malta Permanent Residence Programme — €150,000.
- UAE Residence Visa — $204,000.
- St Kitts and Nevis citizenship by investment — $250,000.
- Greece Golden Visa — €250,000.
- Portugal Golden Visa — €250,000.
- Italy Golden Visa — €250,000.
How to become a Dutch citizen. There are 3 ways to become a Dutch citizen: Automatically at birth (if one or both of your parents holds Dutch citizenship when you are born), through adoption or through acknowledgement of parentage. Through a short, easy procedure that takes 3 months.
| First application and change in purpose of stay | € 380,00 |
|---|---|
| Extension | € 380,00 |
| Holder status long-term resident EU in another EU member state | € 228,00 |
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