Finding Your Dream Home in the Netherlands

Finding a place to live in the Netherlands as an international can feel like embarking on a journey through uncharted territory. With its vibrant cities, picturesque countryside, and rich cultural tapestry, the Netherlands offers an attractive living environment.

The path to securing a home here, whether renting or buying, can be complex and filled with challenges. From understanding the fast-paced housing market to navigating financial and legal requirements, this article aims to equip you with the knowledge necessary to make informed decisions and find your place in this beautiful country.

Here’s a look into what you have in store when considering your new home and the many available options. Welcome to the Netherlands and happy house hunting!

Understanding the Housing Market

The Dutch real estate market is dynamic and highly competitive, particularly in major urban areas such as Amsterdam, Rotterdam, Utrecht, and The Hague. These cities are known for their vibrant culture, strong job markets, and international communities, making them desirable places to live. However, this desirability has driven up property prices and made the rental market equally competitive.

For internationals, the first step in finding a home is to understand the lay of the land. In cities like Utrecht and Amsterdam, demand for housing far exceeds supply, leading to high prices and fierce competition in both rental and purchase markets. Rotterdam, while slightly more affordable, is also experiencing rising prices as it grows in popularity among locals and internationals alike.

Renting a Home: What to Know

For many internationals, renting is the most practical first step when moving to the Netherlands. However, the rental market presents its own set of challenges. The scarcity of available properties means that apartments can be snapped up quickly, often within days of being listed. This fast pace requires prospective renters to act swiftly and decisively.

Renting in the Netherlands generally falls into two categories: the subsidised sector (social housing) and the private sector. Social housing is typically reserved for those with lower incomes and can have long waiting lists, making it less accessible for most internationals. The private sector, on the other hand, offers a wider range of options but at higher prices.

In cities like Amsterdam, expect to pay a premium for even modest apartments, with prices often exceeding 1,500 euros per month for a one-bedroom flat in the city centre. Additionally, landlords commonly require a deposit of one to two months’ rent, and some may also ask for proof of income or a guarantor.

Key Considerations When Renting

When renting a home in the Netherlands, it is important to be aware of your rights and responsibilities as a tenant. The rental market is regulated to some extent, with rules in place to prevent excessive rent increases and to ensure that properties meet certain standards.

However, as issues can still arise, it is crucial to carefully review your rental contract before signing and to ensure that it includes all agreed terms, such as the duration of the lease, the rent amount, and any additional costs like utilities or service charges. It is also important to confirm whether or not the occupancy restrictions will permit the tenant(s) to register their residency with the municipality.

Another consideration is the condition of the property. Unlike in some other countries, it is not uncommon for rental properties in the Netherlands to be unfurnished or even “shell” apartments, meaning they may lack basic fixtures like flooring, lighting, or kitchen appliances. This is something to clarify with the landlord before agreeing to the lease.

Buying a Home: A Strategic Move

For those planning to stay in the Netherlands long term, buying a home can be an attractive option. Homeownership offers stability and the potential for financial growth, particularly as property values continue to rise. However, buying a home in the Netherlands is not without its complexities, especially for internationals.

The Dutch real estate market, particularly in major cities, is competitive. Properties in desirable areas can receive multiple offers shortly after being listed, often selling above the asking price. This means that buyers need to be well-prepared, both financially and strategically, to secure a property.

Financial and Legal Considerations

Securing a mortgage is one of the most significant steps in the home-buying process. The Dutch mortgage market offers various options, but as an international, you may face additional hurdles. Lenders typically require proof of stable income and may also require that you have lived and worked in the Netherlands for a certain period. Some banks may even require a higher deposit from international buyers.

The legal process of buying a home in the Netherlands involves working with a notary, who handles the transfer of ownership and ensures that all legal requirements are met. It is advisable to choose a notary experienced in working with international clients, as they can guide you through the process and ensure that you understand all the documentation involved.

Strategic Planning

Whether renting or buying, the key to successfully finding a home in the Netherlands is strategic planning and timely action. The fast-paced nature of the market means that you need to be prepared to move quickly when you find a property that meets your needs.

For renters, this might mean having your paperwork ready, including proof of income, identification, and references, so you can apply as soon as you find a suitable property. For buyers, it means having your finances in order, with mortgage pre-approval if possible, and being ready to make a competitive offer when the right property comes along.

Making Informed Decisions

Finding a place to live in the Netherlands as an international can be a rewarding experience, but it requires careful planning and informed decision-making. By understanding the housing market, knowing your rights and responsibilities, and seeking professional advice when needed, you can navigate the complexities of renting or buying a home with confidence.

The journey may be challenging at times, but with the right approach, you will find yourself settling into a home that allows you to fully enjoy all that the Netherlands has to offer. Whether you are drawn to the vibrant city life of Amsterdam, the modern charm of Rotterdam, or the tranquil beauty of the Dutch countryside, the perfect home is out there waiting for you.

Should I Buy or Rent a House or Flat?

When deciding whether to buy or rent, consider the following key factors:

• Length of Stay: If you plan to stay for a short period, renting might be the better option. Buying involves additional costs, typically around 6-7% of the purchase price, plus any potential renovation expenses.
• Budget: If you are thinking of buying, your budget is crucial. The bank will assess your income and assets to determine the maximum mortgage amount you can secure.
• Tax Implications: Consider how your personal situation and taxable income might affect your tax returns. This can influence whether buying or renting is more financially advantageous.

Don’t forget…
It is advisable to discuss your marital status with the notary, as this can have legal implications when selling property.

Considerations When Buying

When choosing a house or apartment, keep the following in mind:

• Research neighbourhoods based on factors such as housing prices, public transportation, green spaces, commute times, and proximity to schools.
• Visit properties during both day and evening to spot any potential issues and get a true feeling for the area.
• Limit the number of daily viewings.
• Take photos and notes.
• Engage in conversations with the estate agent, seller, and locals to gather more insights.
• Heed your estate agent’s advice.
• Ask about the property’s ownership, how long it has been on the market, the number of viewings and bids, the reason for sale, and how quickly it needs to be sold.
• Avoid getting involved in a bidding war or making sealed bid offers if possible.

Purchasing Property

Buying property in the Netherlands is relatively straightforward, but there are key steps to follow.

Finding a Makelaar (Estate Agent)

Although it is legal to buy property without a makelaar (estate agent), it is not recommended. In the Netherlands, you typically work exclusively with one agent. Start by providing your agent with a list of features and characteristics you desire in a home, helping them narrow down properties that best suit your needs. Choose an agent experienced in assisting internationals for the best results.

Your estate agent will guide you through every stage of the home-buying process, from the initial search to the final paperwork. They will assist with everything, including technical inspections, negotiations, translation, understanding the bidding process, and handling all administrative tasks.

Legal Status of the Property

One crucial aspect of buying a property is understanding its legal status. You need to determine whether the property is eigen grond (freehold) or erfpacht (leasehold). If it is freehold, you own both the house and the land it sits on. In contrast, leasehold means you own the house but not the land, which is common for apartments. In such cases, you will be responsible for an annual fee to rent the plot. Your real estate agent can clarify these details for you.

For existing properties, the sale is typically labelled as kosten koper (kk), meaning the buyer covers additional costs such as overdrachtsbelasting (property transfer tax) and notariskosten (notary costs). Conversely, new properties are often sold as vrij op naam (V.O.N.), where the purchase price includes VAT, property transfer tax, and notary fees.

While the selling agent might suggest someone for this task, they may not be impartial. It is best to rely on your own real estate agent for a referral. If you are not working with an agent, you might want to seek advice from the Vereniging Eigen Huis, a homeowners’ association in the Netherlands.

Additional Expenses

One of the key costs to consider when purchasing a home is the overdrachtsbelasting (property transfer tax), a percentage of the sale price agreed upon with the seller. However, this tax does not apply if you acquire the house through divorce, marriage, or inheritance. The current property transfer tax rate is set at 2%.

Homeowners’ Associations

If you are thinking of buying an apartment, you will become a member of a Vereniging van Eigenaren (VvE), or Homeowners’ Association. The VvE is responsible for managing and making decisions regarding common areas of the building and the land it sits on. In the Netherlands, it is now mandatory for apartment buildings to have a VvE, which also arranges the building’s fire insurance. The specifics of the property and your obligations as a member will be detailed in your purchase contract.

The Role of the Notary

In the Dutch legal system, notarissen (notaries) hold a unique position alongside other legal professionals.

A notary in the Netherlands is responsible for balancing the interests of all parties involved in a legal transaction. They remain impartial and independent, ensuring fairness for everyone involved. For example, during a property transfer, the notary represents both the seller and the buyer, ensuring that the process is handled properly for both sides.

Lawful Cooling-Off Period

In the Netherlands, this is called the wettelijke bedenktijd. After a verbal agreement, a voorlopige koopakte (provisional purchase deed) is drawn up, which is valid for three working days. During this time, the buyer can reconsider their decision, back out of the purchase, or hire experts to inspect the property. Consult your estate agent for more details.

Agreement of Sale

Once an agreement is reached, the selling agent prepares a koopakte (purchase deed) for you to sign. It is crucial to thoroughly read the document and ensure that all terms are accurately reflected before signing. In Amsterdam, the notary is involved at this stage, offering legal advice on judicial questions and sales terms. Elsewhere in the Netherlands, the selling and purchasing agents handle this process with their clients.

After all parties have signed the purchase deed, the notary steps in to organise the transfer. They will draft the akte van levering (terms of delivery) for the property handover and assist with the hypotheekakte (mortgage deed). The buyer has the freedom to choose their own notary. The purchase deed typically includes a penalty clause if any party fails to meet its terms.

Once both parties sign the purchase deed, the deal is finalised, and the property is technically yours. It is important to note that a verbal agreement is not legally binding. An important clause in the purchase deed is the financial clause, which allows the deed to be cancelled if the buyer cannot secure financing.

Registration

The notary will register all deeds with the Kadaster (land registry), including the leveringsakte (deed of conveyance) and the hypotheekakte (mortgage deed). They will also prepare and verify all necessary documents, such as the deed of transfer, on your behalf.

Deposit or Prepayment

After the sale agreement is finalised, the buyer must transfer a waarborgsom (deposit) of 10% or more of the purchase price to the notary. During this period, it is advisable to have a home inspection conducted by a technical expert. The deposit is held in the notary’s account, though a bank guarantee may also be accepted in place of a deposit. Before making the final payment, you can ask your agent to record the meter readings and check that the property has been vacated as agreed.

Judicial Transfer

The levering, or judicial transfer of property ownership, occurs on the transfer date specified in the purchase agreement, usually at the notary’s office. The actual delivery of the property takes place when the keys are handed over.

A Final Thought

Whether buying or renting your next home, remember the old adage, home is where the heart is, and may whatever decision you make be one that brings everlasting memories of your time in the Netherlands, short-term, long-term or for a lifetime. 

About the author

Richard Morris has been writing and editing for magazines and newspapers since 1988. A native of Chicago, Illinois, he has spent the last thirty years living in the EU (Spain, England and, since 2010, the Netherlands). An author, playwright, composer and serial entrepreneur, Richard was appointed editor of ACCESS Magazine in July 2023.

As originally published in the ACCESS Magazine. 

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