Buying property in the Netherlands as an American – is it hard?

The Dutch housing market is renowned for its stability, historic charm, and – unfortunately for buyers – its competitiveness. For Americans looking to put down roots abroad, the prospect of navigating a foreign property market can feel daunting.

So, is it hard? The actual process of buying property is transparent and well-regulated. In fact, there are very few legal barriers stopping U.S. citizens from owning a piece of the Netherlands.

However, the real challenge often lies in securing financing and navigating the tax implications on both sides of the Atlantic. Let’s take a closer look.

Use Wise to save money on your property purchase

Buying a property abroad is a big step and involves important financial decisions. Wise, an international money transfer company, provides specialist support to help you navigate large international transfers and save on exchange fees. Fill out Wise’s online form today to find out how they can assist you.

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Can Americans buy property in the Netherlands?

Yes, absolutely. The Netherlands has an open property market, meaning there are no restrictions on foreign ownership. You do not need to be a citizen, a permanent resident, or even live in the country to buy a house, apartment, or plot of land.

However, while the right to buy is simple, the means to do so – specifically getting a mortgage – can be stricter for non-EU citizens, which we will cover later in this guide.

Tip: hunt for the best exchange rates when moving money to the Netherlands

If you are buying a property with foreign currency (like USD), you will need to convert it to Euros for the deposit and final purchase. You can use a Wise Account to hold, convert, and send money to the Netherlands at the mid-market exchange rate, often making it a cost-effective alternative to traditional bank transfers.

What buying property gets you

Aside from a beautiful home in one of Europe’s most connected countries, buying property in the Netherlands offers:

• A stable asset: The Dutch housing market has historically been robust, with steady appreciation in key cities like Amsterdam, Utrecht, and Rotterdam.
• Income potential: If you purchase an investment property (buy-to-let), you can generate rental income, though strict rules apply.
• Tax benefits (for residents): If you live in the property as your main residence, you may benefit from mortgage interest tax deduction (hypotheekrenteaftrek), which can significantly lower your monthly costs.

What buying property does not get you

It is a common misconception that buying real estate in Europe automatically leads to a visa or passport. In the Netherlands, this is strictly not the case.

• No “Golden Visa”: Buying a house in the Netherlands does not grant you residency, a visa, or citizenship. You generally cannot simply move into your new home unless you have a valid residence permit sponsored by an employer, partner, or via the DAFT (Dutch American Friendship Treaty).
• DAFT distinction: The DAFT allows American entrepreneurs to establish a business in the Netherlands and gain residency. While you need a place to live to satisfy DAFT requirements, simply buying a house does not qualify you for the treaty; you must have an active business.

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How difficult is the process?

The process is highly regulated and involves several formal steps. It is not necessarily “difficult,” but it is bureaucratic and moves quickly.You will almost certainly need a buying agent (aankoopmakelaar) to help you navigate bidding wars and a civil-law notary (notaris) to handle the legal transfer.

The forms and key documents

You will encounter several key Dutch documents:

• Koopovereenkomst: The provisional purchase deed. Once signed, you have a legally binding agreement (after a standard 3-day cooling-off period).
• Taxatierapport: A valuation report required by lenders to approve a mortgage.
• Leveringsakte: The deed of transfer signed at the notary’s office on handover day.

Typical timelines

The timeline from finding a house to getting the keys can vary:

• Cash buyers: 3–4 weeks. Since you don’t need to wait for bank approval, the process is largely determined by how fast the notary can draft the deeds.
• Mortgage buyers: 8–12 weeks. Securing a mortgage as an expat or non-resident involves more paperwork and risk assessment by the bank, which extends the timeline.

Transferring money to the Netherlands for the purchase

When buying property, you will need to transfer a significant amount of money to the Netherlands – typically a 10% deposit sent to the notary’s escrow account shortly after signing the purchase contract, followed by the remaining balance or closing costs.

If your funds are in US Dollars, using a traditional bank to transfer this large sum can result in high fees and unfavorable exchange rates.

You can use Wise to send large amounts of money to the Netherlands securely. Wise uses the mid-market exchange rate – the one you see on Google – with much lower fees than the expensive markups banks often add. This can potentially save you a significant amount on a property transaction.

• Pay the seller (via notary): You can send the funds directly to the notary’s third-party account (derdengeldrekening) in Euros.
• Move money between accounts: If you already have a Dutch bank account, you can use Wise to move funds from your US account to your Dutch account quickly and at low cost.

Fill out Wise’s form today to see how they can help you with a property purchase abroad.

What are the tax implications?

Taxes are a certainty in the Netherlands, and for Americans, they come with an extra layer of complexity due to US citizenship-based taxation.

In the Netherlands

• Transfer Tax (Overdrachtsbelasting):
  • 2% for residential properties you will live in yourself.
  • 0% (Exemption): Buyers aged 18–35 buying a home under €525,000 (2025 limit) may be exempt for their first purchase.
  • 10.4%: For investment properties, holiday homes, or houses you do not intend to live in as your main residence (note: this rate is set to lower to 8% in 2026).
• Notary Fees: usually €1,000–€2,000, paid by the buyer (kosten koper).
• Property Tax (OZB): An annual municipal tax based on the property’s value (WOZ-waarde), typically between 0.1% and 0.3%.

In the USA

As a US citizen, you must report worldwide income and assets to the IRS.

• FATCA & FBAR: If your Dutch property is held through a foreign entity or you have large amounts of cash in a Dutch bank account (over $10,000), you must file an FBAR (FinCEN Form 114) and potentially Form 8938 under FATCA.
• Capital Gains: The US may tax capital gains when you sell the property, though you can often claim credits for taxes paid in the Netherlands.
• Rental Income: Income from renting out Dutch property must be reported on your US tax return.

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Local laws and regional variations

While property laws are generally national, local municipalities (gemeentes) have specific rules that affect buyers, particularly investors.

• Purchase Protection (Opkoopbescherming): Major cities like Amsterdam, Rotterdam, The Hague, and Utrecht have introduced rules banning investors from buying affordable and mid-priced homes to rent out. If you buy a home in these protected segments, you are often required to live in it yourself for the first four years.
• Leasehold (Erfpacht): In Amsterdam specifically, many properties stand on land owned by the municipality. You own the building but pay “ground rent” for the land. Always check if the leasehold is paid off perpetually or if you will owe annual fees.

Renting out your property: is it allowed?

Can you buy a house and rent it out? Yes, but with caveats.

• Mortgage restrictions: Standard residential mortgages in the Netherlands usually prohibit renting out the property. If you want to be a landlord, you need a specific “Buy-to-Let” (verhuurhypotheek) mortgage, which typically requires a larger down payment (30-40%) and has higher interest rates.
• Tenant protection: Dutch law heavily favors tenants. It can be very difficult to evict a tenant, even if they stop paying rent or you want to sell the property. Contracts are often indefinite by default.
• Short-term rentals: Renting out via platforms like Airbnb is strictly regulated. In Amsterdam, for example, you are limited to 30 nights per year and must have a permit.

Buying land in the Netherlands

Foreigners, including Americans, are free to buy land in the Netherlands.

There are no restrictions on nationality. Buying a plot to build your own home (zelfbouw) is a popular but competitive option.

You will still need to go through a notary to transfer the deed, and the transfer tax for land is generally 10.4%, as it is considered non-residential property until a home is built (though new builds typically attract 21% VAT instead of transfer tax).

Getting a mortgage: should I get one in the Netherlands or the USA?

It is extremely rare for US lenders to offer mortgages for properties in the Netherlands. You will almost certainly need to apply with a Dutch bank or an international lender based in Europe.

• Residents: If you live in the Netherlands with a residence permit and earn income in Euros, you can usually borrow up to 100% of the property value, similar to a Dutch citizen.
• Non-residents: If you live in the US and want to buy a holiday home in the Netherlands, financing is much harder. Most main Dutch banks do not lend to non-residents. Specialized “expat mortgages” exist but often require a down payment of 30–40% (max 60–70% Loan-to-Value) and have higher interest rates.
• “Blacklist” checks: Banks will check your creditworthiness. While they can’t check your US credit score directly, they will ask for proof of income, debts, and assets.

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The verdict: should you buy a house in the Netherlands as an American?

Buying property here is a solid investment, but it comes with a steep learning curve.

Pros:

• Stable investment: The Dutch market has proven resilient and retains value well.
• No restrictions: You have the same legal ownership rights as a local.
• Language: The process can largely be conducted in English; most notaries and agents are fluent.
• Tax benefits: Mortgage interest deduction is a significant perk if you live and work in the Netherlands.

Cons:

• High entry costs: You need significant cash for closing costs (approx. 4-6% of purchase price) plus the deposit.
• No visa attached: It does not solve your immigration status.
• Tax complexity: You must navigate two tax systems (Dutch and US).
• Tenant laws: Being a landlord is legally complex and heavily regulated.

Useful resources

Government.nl – Official information on transfer taxes and exemptions.

Business.gov.nl – Guide to renting out property and tenancy laws.

Kadaster – The Netherlands’ Land Registry and Mapping Agency.

Funda – The largest property listing site in the Netherlands.

Belastingdienst – The Dutch Tax and Customs Administration.