Housing in the Netherlands

Buying a House

The absolute advantage of owning a property is the benefit of having made an investment. However, expats should keep in mind that buying may be not profitable unless living in it for at least two to three years. Apart from that it’s very important to pick the right type of property and location. Eventually, this will make it easier to sell or rent the property once you decide to leave the Netherlands.
When buying a property several attractive conditions apply. Undoubtedly the most attractive one is that the interest of the mortgage is deductible. For this rule to apply, the house must be your principal place of residence. The mortgage interest is deductible from your tax income up to a maximum period of 30 years.
Other tax-deductible costs regarding the mortgage are notary registration costs, insurances or bank guarantee covering payments in case of disability and unemployment. Bank closing fee and valuation costs are tax deductible too.

Renting a House

Renting is less risky and far more flexible than buying. You don’t have to worry about maintenance or insuring the property. The monthly rent is fixed and you have the freedom to end the contract within two months. On the other hand the rent paid is not a tax deductible item and you don’t benefit from a possible increase of the value of the house.

When renting, it is recommended to hire the expertise of a real estate agent who will make sure that everything thing is legally correct and that your best interest is protected. On the other hand if one feels confident enough to tackle this issue on his/her own perhaps due to previous renting experience elsewhere, or for the simple reason that you’d rather prefer avoid paying a one month’s rent commission to the real estate agent, then the following information will help you to stay on the right track for searching and subsequently renting a suitable accommodation.

First and foremost keep in mind that a verbal contract is binding under Dutch legislation, thus make sure to be absolutely certain about the property before making any written or verbal commitment.

It is recommended to ask for an inventory list noting any pre-existing damages to the property, furniture or any other item if applicable. Make sure to check all the appliances including the heating system, the water heater and the radiator. Preferably an inspection should be made, after which an inspection report will be drawn up signed by both parties.

Generally lessor’s and lessee’s responsibilities are mentioned in the tenancy contract, mainly stating that minor repairs up to an agreed limit are to be borne by the lessee while major repairs shall be the responsibility of the landlord unless caused through fault or negligence of the lessee.
Normally for short lets (up to three months) utility bills including gas/water/electricity, telephone and internet are included in the rental. On the opposite, for longer rental terms, landlords prefer to keep utility bills separate and thus tenants need to apply for these services themselves. In this case, it is recommended to discuss this issue with the landlord on forehand, as it might get tricky when applying for these services due to language barriers.

Sample of tenancy contract