If you are coming to live and work in the Netherlands, you might be wondering how to find a place to live and whether you’d be better off renting or buying. Your (new) employer in the Netherlands may be able to help you. Take a look at our tips.
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As an expat, you have the option of buying a house in the Netherlands. Buying a house has its advantages compared to renting a house, but it has some downsides as well. So should you rent or buy a home if you’re living in a new country?
A lot of employers of expats help their employees find a home to rent and make the necessary immigration arrangements, such as requesting a Dutch personal ID number (BSN). Sometimes they have properties that they rent out to international employees. Alternatively, they can ask the HR department to help expats find a rental property or they use relocators. Most expats prefer a furnished property, so they don’t need to bring furniture from home or buy new furniture in the Netherlands.
In the past, employers always paid the living expenses of international employees, but that’s certainly not always the case any more. If you are an expat and do receive a contribution towards your living expenses, this will usually be lower than it used to be and you will probably only receive it for a short period.
Maybe you’ll be looking for a rental property yourself. If you rent a property, you won’t need to worry about maintenance. Unfortunately, there aren’t that many rental properties available, especially in popular cities. The rental properties that are available are often very expensive. A rent of thousands of euros per month is no exception. Rents also go up every year.
As an expat, you have to rent a property in the private sector, where no maximum rents apply. There are a lot of estate agents that focus especially on expats in the Netherlands, so they will probably be able to help you. A lot of private individuals also purchase properties to rent out to expats.
House prices have risen dramatically in the Netherlands in recent years, due to low interest rates. However, most expats still find property in the Netherlands affordable, certainly compared with other European cities such as Paris and London.
There are many benefits of buying a property. Repaying your mortgage means that you build up capital. And you know where you stand with your living expenses if you have a fixed mortgage interest rate. Did you know that you can also deduct mortgage interest from your taxable income on certain conditions? You are, of course, responsible for your home’s maintenance and you also have costs for additional insurance, property tax and council tax.
Most expats want a property that they can move straight into without having to have any renovations done. There will almost always be an estate agent mediating in the buying and selling process. As an expat, you are no different to any other buyer for the estate agent, but they will assist you in English.
Be sure to check whether you’re eligible for the 30% tax facility, which allows employers to give certain employees an untaxed reimbursement for the extraterritorial costs they incur. This facility amounts to:
The tax facility applies for your first 5 years in the Netherlands. It previously applied for the first 8 years, but this was reduced to 5 years on 1 January 2019. If you started employment before that date, you may be able to benefit from the tax facility for 8 years.
The information on this page is a brief explanation. You can not derive any rights from this.
Are you wondering what a particular article might mean for your financial situation? Or maybe you have a question about an early retirement plan or how to build your assets wisely? Our International Clients Desk teams are glad to help you at no additional cost.
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Whether you’re an expat about to move to the Netherlands or you’ve already been living here for a while, getting used to the Dutch and their habits. Allow us to explain a few typical Dutch things.
