Buy-to-let mortgages in the Netherlands

Buy-to-let mortgages in the Netherlands

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Foreigners can invest in buy-to-let property in the Netherlands, provided certain conditions are met.

Expats often ask whether it would be possible for them to purchase a rented apartment or buy-to-let investment. Against the backdrop of low interest rates and rising property prices, apartments and residences in the large Dutch cities are considered an interesting investment. In addition to gaining rental income, forecasts project that buyers can expect an increase in property value as well. Buy-to-let properties can be purchased with private cash, however, taking out a mortgage has recently become an option as Finsens explains below.

Conditions for buy-to-let investments in the Netherlands

On behalf of the expat community, Finsens investigated the requirements for foreigners looking to invest in a buy-to-let property in the Netherlands.

Expats must have spent at least three years living and working in the Netherlands. Their minimum gross income should be EUR 45,000 per year. Also the EU nationality condition applies.

Another significant detail is that private cash is required at all times. The bank will expect buyers to invest roughly 40 percent of the purchase price with their own cash. 

Getting a mortgage for buy-to-let property in the Netherlands

Provided the above conditions are met, a mortgage can be requested. The bank will set yet a few more conditions regarding (the rental of) the apartment. For instance, a permanent occupation needs to be the case. AirBnB or any other short-term rental is disallowed.

Bank may only finance apartments and residences located in large cities due to the minor risk of vacancy.

Up to 50 percent of the value of the property can be paid off (with a maximum period of 30 years). If the mortgage is higher, then this part of the mortgage needs to be repaid on a straight-line basis in 10 years. The rental income needs to exceed interest and repayment in the first year.

The tax consequences are as follows. For the value of the apartment (less the mortgage) a 1.2 percent levy is indebted annually. This is the box 3 levy in the income tax.


Finsens Financial Services, / Expatica


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