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.