Is real estate profitable in Netherlands?
Urban areas, particularly in cities like Amsterdam, Rotterdam, and Utrecht, are highly sought after for residential investments due to their strong rental markets and ongoing urban development. These areas tend to attract a mix of local and international tenants, making them lucrative for rental income.
Average gross rental yields in the Netherlands stands at 5.56% (Q1, 2024).
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%.
In the Netherlands, there's no requirement for you to be a citizen to buy property. This means as an American, you can definitely purchase real estate there. However, owning property in the Netherlands doesn't automatically grant you residency rights.
However, international research by Oxford Economics published last week still cites the Dutch housing market as the most overpriced of Europe, compared with local rents and income.
If you intend to invest in real estate in Amsterdam it's a good thing because an expanding economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.
Monthly rent
According to Numbeo, average prices for renting in the Netherlands are currently between €810–1,020 a month for a one-bedroom apartment and between €1,250–1660 a month for a three-bedroom apartment.
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 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.
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.
What is the 30 rule in the Netherlands?
The 30% tax ruling is a tax advantage for highly skilled migrants in the Netherlands. An employer can pay up to 30% of the salary of an expat employee with the 30% ruling free of tax. An enormous tax saving for both employee and employer.
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.
Does the Netherlands have free healthcare. The Netherlands has universal healthcare, but the government requires all adults living or working in the Netherlands to have basic insurance. The basic plan will cost € 100-120 out of pocket.
The cost of living in the Netherlands for a single person = ~ €1,782 per month and ~ €21,384 per year. Average cost of living in the Netherlands for a student = ~ €1,250 per month and ~ €15,000 per year. Cost of living in the Netherlands for a family = ~ € 4,102 per month and ~ €49,224 per year.
| Cost | Amsterdam | Rotterdam |
|---|---|---|
| Renting 1 bedroom (per month) | $1,513 (USD) | $1,062 (USD) |
| Renting 3 bedrooms (per month) | $2,465 (USD) | $1,719 (USD) |
| Buying (per square foot) | $628 (USD) | $323 (USD) |
Safety in the Netherlands
The Netherlands compares favourably to the UK and the US when it comes to crime statistics. Expats will feel secure, and even large football crowds are usually family-friendly and require little policing.
The Netherlands 10 Years Government Bond has a 2.744% yield (last update 16 Apr 2024 17:15 GMT+0).
The net prime yield for offices in Amsterdam increased for the second year in a row in 2023, after a three-year period of remaining stable. In the fourth quarter of 2023, the prime yield amounted to 4.95 percent, up from 3.1 percent in 2021.
The Netherlands 5 Years Government Bond has a 2.652% yield.
The Netherlands 6 Months Government Bond has a 3.639% yield (last update 16 Apr 2024 17:15 GMT+0).
References
- http://www.worldgovernmentbonds.com/bond-historical-data/netherlands/6-months/
- https://visaguide.world/moving-to/netherlands/from-usa/
- https://www.leideninternationalcentre.nl/get-advice/blogs/relocating-to-the-netherlands-from-the-us
- https://www.expatica.com/nl/housing/buying/your-guide-to-dutch-mortgages-101837/
- https://www.movehub.com/us/international-moving/netherlands/
- https://nltimes.nl/2023/10/03/hard-find-apartment-netherlands
- https://www.hollandtimes.nl/articles/national/almost-e100000-of-income-per-year-is-needed-to-purchase-the-average-home/
- https://www.quora.com/Is-70-000-euro-a-good-salary-for-a-family-of-4-parents-and-2-kids-to-live-in-Amsterdam
- https://www.quora.com/Is-80k-Euro-a-good-salary-for-an-expat-in-the-Netherlands-North-Brabant-with-a-family-of-3-How-much-would-a-rental-flat-with-2-rooms-cost
- https://investropa.com/blogs/news/netherlands-us-citizen-property-ownership
- https://www.stoit.nl/en/rental/buying-a-house-to-rent-out/
- https://www.blueumbrella.nl/30-tax-ruling
- https://longreads.cbs.nl/the-netherlands-in-numbers-2023/what-is-working-peoples-income/
- https://www.knightfrank.com/overseas-property/netherlands-overview/buying-property-in-the-netherlands
- https://www.dutchnews.nl/2024/01/house-prices-rise-again-and-more-homes-are-being-sold/
- https://ind.nl/en/fees-costs-of-an-application
- http://www.worldgovernmentbonds.com/bond-historical-data/netherlands/5-years/
- https://ind.nl/en/extend-renew-and-change/permanent-residency/permanent-residence-permit
- https://www.statista.com/statistics/532550/net-office-prime-yield-amsterdam-netherlands-europe/
- https://www.iamsterdam.com/en/live-work-study/living/housing/steps-to-buying-a-house-in-the-netherlands
- https://www.jobinthenetherlands.com/salaries-in-the-netherlands/
- https://www.expatica.com/nl/housing/renting/renting-a-property-in-the-netherlands-102925/
- https://www.globalpropertyguide.com/europe/netherlands/rental-yields
- https://www.quora.com/Is-5000-Eur-month-gross-salary-sufficient-to-live-in-Amsterdam
- https://www.statista.com/statistics/593642/average-purchase-price-of-dwellings-in-the-netherlands/
- https://nnroad.com/blog/wages-in-the-netherlands/
- https://immigration-netherlands.com/how-to-relocate-to-the-netherlands-from-us/
- https://finance.yahoo.com/news/12-best-places-retire-netherlands-182321248.html
- https://www.iamsterdam.com/en/live-work-study/living/housing/why-buy-rather-than-rent
- https://www.instarem.com/blog/cost-of-living-netherlands/
- https://immigrantinvest.com/blog/netherlands-golden-visa-en/
- https://www.government.nl/topics/immigration-to-the-netherlands/living-in-the-netherlands-on-a-residence-permit
- https://smartasset.com/retirement/retire-in-netherlands
- https://www.quora.com/How-decent-are-100-000-Euros-gross-per-year-salary-in-Amsterdam-for-a-couple
- https://www.government.nl/topics/dutch-citizenship/becoming-a-dutch-citizen
- https://www.expatica.com/nl/working/employment-law/minimum-wage-in-the-netherlands-852578/
- https://wise.com/us/blog/healthcare-system-in-the-netherlands
- https://immigrantinvest.com/blog/cheapest-golden-visa-countries/
- https://netherlands.bolderlaunch.com/guides/legal-assistance-netherlands/buying-dutch-property-with-foreign-funds/
- https://visitukraine.today/blog/1089/cost-of-living-in-the-netherlands-prices-for-renting-an-apartment-utilities-food
- https://www.expatarrivals.com/europe/netherlands/pros-and-cons-moving-netherlands
- https://www.quora.com/Is-3000-Euros-a-month-in-2023-enough-to-live-in-Amsterdam-for-a-couple-who-has-to-pay-rent-as-well-How-much-money-should-we-expect-to-spend-in-total
- http://www.worldgovernmentbonds.com/bond-historical-data/netherlands/10-years/
- https://welcome.utrechtregion.com/en/news/buying-a-house-the-dutch-way
- https://investropa.com/blogs/news/amsterdam-property
- https://mastersexpo.com/en/bestbetaalde-banen-nederland/
- https://www.expathousingnetwork.nl/blog/buying-an-apartment-or-house-in-the-netherlands
- https://www.expatriatehealthcare.com/the-pros-and-cons-of-moving-to-the-netherlands/
- https://passportlegacy.com/easiest-countries-to-immigrate/
- https://www.expatica.com/nl/housing/buying/buying-a-property-in-the-netherlands-100633/
- https://nl.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/paying-taxes-in-the-netherlands-fatca/
- https://www.statista.com/statistics/1298754/netherlands-income-by-group/
- https://visaguide.world/moving-to/netherlands/
- https://www.statista.com/statistics/630471/average-price-of-single-family-homes-in-the-netherlands-by-province/
