Fees and taxes

Additional costs on your property purchase

When buying property in the Netherlands, there are quite a few taxes and costs involved.

Fees and taxes

Some of the additional costs you need to consider on your property purchase are the following:

  • Transfer tax: 2% of the purchase price of the house. You will also pay 2% extra with the purchase of a garden, shed or garage. A transfer tax of 6% is mandatory for any other kind of property purchase (such as office buildings).
  • Real estate fee: Real estate agents can ask from 0.5% to 2% as a fee.
  • Notary costs: These costs can be negotiated, but normally you would pay around €1,000 for a house of €250,000.
  • Valuation costs: These costs can be negotiated but the averages are as following: Up to €113,445 you will pay 0.185%. Then, from 113,445 to 453,780 you will pay 0.165% and above this price range you will pay 0.150%. Nowadays you can find even cheaper prices and it is recommended that you compare multiple brokers.
  • Survey costs: These can range between €500 and €1,000 or more depending on what kind of tests you want to have done.
  • Closing fee: Usually amounts to 1% of the mortgage price.

The notary is responsible for the proper settlement of the payment for the property and all additional costs.

Tax consequences

The interest that you pay on your mortgage, for the purchase or renovation of a property, is tax deductible if the property is your main residence. Some expenses, such as closing fee, notary costs, valuation costs and other costs related to the mortgage, are also tax deductible.

You still need to pay taxes on the deemed rental value (eigenwoningforfait) based on the WOZ value. The WOZ value is determined differently per local municipality. 

If you decide to rent out the property and live in your home country, you are still taxable as a non-resident taxpayer. The property will then be taxable according to new rules; the mortgage interest can no longer be deducted from taxes and you will need to pay a deemed return levy on the net value of the property.But the rent you get is tax-free, so just make sure the rent is the same or more than the interest.

Some of the additional costs you need to consider on your property purchase are the following:

  • Transfer tax: 2% of the purchase price of the house. You will also pay 2% extra with the purchase of a garden, shed or garage. A transfer tax of 6% is mandatory for any other kind of property purchase (such as office buildings).
  • Real estate fee: Real estate agents can ask from 0.5% to 2% as a fee.
  • Notary costs: These costs can be negotiated, but normally you would pay around €1,000 for a house of €250,000.
  • Valuation costs: These costs can be negotiated but the averages are as following: Up to €113,445 you will pay 0.185%. Then, from 113,445 to 453,780 you will pay 0.165% and above this price range you will pay 0.150%. Nowadays you can find even cheaper prices and it is recommended that you compare multiple brokers.
  • Survey costs: These can range between €500 and €1,000 or more depending on what kind of tests you want to have done.
  • Closing fee: Usually amounts to 1% of the mortgage price.

The notary is responsible for the proper settlement of the payment for the property and all additional costs.

Tax consequences

The interest that you pay on your mortgage, for the purchase or renovation of a property, is tax deductible if the property is your main residence. Some expenses, such as closing fee, notary costs, valuation costs and other costs related to the mortgage, are also tax deductible.

You still need to pay taxes on the deemed rental value (eigenwoningforfait) based on the WOZ value. The WOZ value is determined differently per local municipality. 

If you decide to rent out the property and live in your home country, you are still taxable as a non-resident taxpayer. The property will then be taxable according to new rules; the mortgage interest can no longer be deducted from taxes and you will need to pay a deemed return levy on the net value of the property.But the rent you get is tax-free, so just make sure the rent is the same or more than the interest.

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