Fees and taxes
Additional costs on your property purchase
When buying property in the Netherlands, there are quite a few taxes and costs involved.
Some of the additional costs you need to consider on your property purchase are the following:
- Transfer tax: About 6% of the purchase price of the property.
- Real estate fee: Real estate agents can ask from 1.5% to 2% as a fee.
- Notary costs: These costs can be negotiated, but are usually between €1,000 and €3,000.
- Valuation costs: These can be between €300 to €1,000 depending on the property.
- 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 (this is a unified value that is given to all real estate in the Netherlands and is reviewed every year). The current tax rate is 0.8% of the WOZ value.
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 (about 1.2% tax on the net value). But the rent you get is tax-free, so just make sure the rent is the same or more than the interest.
Also in this section
- Introduction: Buying property in the Netherlands
- Research: How to find your perfect home
- Contract: Property contracts in the Netherlands
- Finance: How to pay for your property
- Fees and taxes: Additional costs on your property purchase
- Glossary: Useful words and phrases
