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Planning to rent your house out? Let your lender know before you do!
2025/10/31 | By Expat Mortgages | Photo by Expat Mortgages
The Dutch phrase ‘let op!’ means ‘watch out’ – and if you ever intend to rent out your home, you should bear this in mind.
It might make sense for internationals to buy a property in the Netherlands, even if they don’t stay in the country forever or are posted to another country for several years. In this case, there could be options for them to rent it out – but the important thing is to plan in advance and keep up to date with the latest rules.
“Buy-to-let mortgages used to be a pretty popular product, but banks are not really jumping on this anymore,” says Matthijs van der Heijden, senior mortgage consultant at Expat Mortgages. “We’ve also noticed that banks have started to chase people who are doing unauthorised rentals – people who have put in a renter and then moved to another property or outside the country.”
Before you go
Financial planning and preparation are key because if a bank discovers an unauthorised situation, it will simply not offer you a new interest rate. The consequences can be severe. “We do get people living abroad who receive communication from the bank informing them that their house rental is unauthorised and advising them either to refinance their loan or pay it back – which usually means selling,” he warns.
If you are planning to move from the Netherlands to another EU country, you may have options to change your loan to a rental product, possibly with another provider. It is critical that you do this while you’re still a resident in the Netherlands because banks will not lend to a non-resident.
If you want to move permanently outside the EU, you need to be aware of the current situation regarding buy-to-let. “The answer is always no,” Matthijs van der Heijden says.
There are two reasons for the shift in banks’ willingness to switch to buy-to-let mortgages. First, a loan is linked to the value of the property and when let, it is worth roughly 80% of the value without sitting tenants (who normally cannot be evicted just because you are selling). Second, the new affordable rent laws introduced in July 2024 mean a new contract offered to a tenant needs to be a permanent contract by default.
Diplomatic clause
One exception that might be relevant for internationals is the so-called ‘diplomatic clause’ for people posted temporarily abroad but who will return. “Usually for a maximum period of two or three years you can rent out a property – and you can also give a temporary contract to the renter,” says Matthijs. “Depending on your bank, you can temporarily rent out your home once every five years.”
You need to prove the situation to your bank. You still need to let them know you are renting out and pay any risk surcharge on the mortgage, and you are also no longer eligible for resident tax breaks such as mortgage interest relief (hypotheekrenteaftrek).
Another thing to be aware of is that different cities have rules about housing in certain price categories: if you buy a smaller property in Rotterdam, Utrecht or Amsterdam, for instance, you cannot rent it out for four years after purchase. Check the rules for your area.
Pay down debt
EU banking legislation means banks must better understand the risk in their portfolios, and a rental property has a lower value and a different repayment risk. “The banks need to have better awareness of what is actually happening with the money they lend,” he adds. “If you’ve lived in a property for only two or three years with a 100% mortgage, you’ve probably not paid off enough to change to a rental product without paying down some more of the debt yourself.”
Of course, if you’re in a position to pay off your mortgage, then you don’t need your bank’s permission to rent it out at all.
The good news: Some providers do still offer buy-to-let mortgages and Expat Mortgages specialises in advising international clients on their personal possibilities. But the strongest advice remains: let op! Check the current situation and take personal advice before you leave your house and offer it for rent.
Important: This column offers general guidance. It does not take into account your personal circumstances and does not constitute financial, legal or tax advice. Laws and lender policies change. You should take personalised advice before making decisions.
