Getting a residence permit through buying a property
Buying a property (the purchase of real estate) in the Netherlands will not lead the investor to get a residence permit in this country. Investment in the Netherlands will lead a person to get a residence permit in this country only if the investor is investing 1,250,000 Euros, which must be spent on jobs that will lead to economic innovation and has profit for the Netherlands. In this procedure of the investment the applicant will get a 5-years residence permit, during which he/she must employ at least 10 citizens of the Netherlands. This type of investment must be entrepreneurial and approved by the Netherlands Chamber of Commerce. Of course, people who want to be entrepreneurs in buying or selling real estate can also get a residence permit, but the amount of this type of investment must be 1,250,000 euros. The Netherlands will issue another type of visa for investors in innovation and entrepreneurship in the Netherlands, called the Golden Visa, which will grant a person a five years’ residence permit. The investor does not need to be present in the Netherlands.
In the Comments section, you can also ask your questions and answer them in a short time.
Topics reviewed in this article:
The possibility of buying a property in the Netherlands by immigrants
Foreigners in the Netherlands can buy a property. The Netherlands has no restrictions on the purchase of a property by foreigners, whether they are resident or non-resident. Everyone can get a loan from the government to buy a property, but in order to get a loan, they have to live and reside in the Netherlands. If you are a citizen of a country in the European Union. You are EEA or a Swiss, you do not need a visa to live or work in the Netherlands, otherwise you must reside in the Netherlands and apply for a National Security Number (BSN) to apply for a loan. For citizens of the Netherlands, some additional costs that are associated with buying a home in the Netherlands are tax deductible. The same is applies to immigrants, but they must have an initial residence permit. The most significant cost is deducted from the tax refund loans. On the other hand, the higher the cost of buying a house in the Netherlands is, the higher your tax rate will be, meaning that the higher the price of the property is, the higher the tax will be. But even with this increase, it is still deducted from person’s taxes. Immigrants can take advantage of a 30% tax deficit by getting a housing loan (mortgage).
The process and legal steps of buying a property
The process of buying a property in the Netherlands usually takes up to three months. You should keep in mind that the buyer generally pays the costs, but some of these costs are not tax deductible. It is usually recommended to consider six percent above the original amount to cover all of the costs that you face. After a verbal agreement, the builder will issue a real estate purchase agreement (property purchase contract) that contains the details of the transaction and the terms of purchase.
Things to keep in mind:
Tip 1:
At the beginning of the process of buying a property in the Netherlands, it is recommended to contact a specialized agency instead of directly contacting the owners. This way you can have a reliable person who is familiar with the laws of the Netherlands and you can make sure you get the maximum benefits of this procedure.
Tip 2:
Up to 3 days after signing it, the buyer can change his/her mind, but after this period, if he/she decides to cancel the transaction (deal), he/she must pay an amount of money as a result.
Tip 3:
In the case of land registration, the applicant must be aware that between 10 to 12 percent of the costs of buying a property must be paid for the fee of official documents, and of the land registration of property.
Tip 4:
Documents that are related to the purchase of property must be stated in Dutch language. But it is recommended for you to have them in your own language to know exactly what documents you are going to sign.
When a written statement is signed by both parties and the required amounts are paid to cover the costs, the transfer contract is concluded and the official documents of the Land Registry will inform about the transaction and the new owners.
Cost of buying a house in the Netherlands
The cost of buying a house in the Netherlands have risen significantly over the past few years. Prices rose in 2018, especially in Amsterdam, Utrecht and The Hague, and are likely to continue to rise. This is partly due to the lack of housing in major cities. There are significant differences in property prices between different regions of the Netherlands. In 2019, the average price of a house in the province of Groningen was 213,000 euros. This is much less than the provinces of Amsterdam and Harlem. Where the average price was 308,000 euros.
According to ABN AMRO Bank, price growth (the increase of the prices) have the greatest impact on the market, making it more difficult for first-time buyers. According to these economists, the annual increase has decreased from 7% in 2018 to 4% in 2020.
The table below shows the most expensive house prices in the Netherlands and the cheapest houses which are registered by the municipalities of those cities.
| Amount of money | The cheapest houses | Amount of money | The most expensive houses | Row |
| 188,800 euros | Het Hogeland | 831,600 euros | Bloemendaal | 1 |
| 187,500 euros | Veendam | 775,900 euros | Blaricum | 2 |
| 185,500 euros | Stadskanaal | 768,100 euros | Laren | 3 |
| 182,300 euros | Heerlen | 711,300 euros | Wassenaar | 4 |
| 181,700 euros | Kerkrade | 667,400 euros | Rozendaal | 5 |
| 175,800 euros | Oldambt | 626,600 euros | Heemstede | 6 |
| 175,100 euros | Den Helder | 525,200 euros | Amstelveen | 7 |
| 174,200 euros | Brunssum | 510,200 euros | Goolse Meren | 8 |
| 161,300 euros | Pekela | 494,100 euros | Ouder-Amstel | 9 |
| 155,100 euros | Delfzijl | 488,400 euros | Bergen | 10 |
Ancillary costs of buying a property in the Netherlands
In the Netherlands, the buyer not only pays an amount of money to buy the property, he/she has to pay other costs. we review the Ancillary costs of buying a property in the Netherlands. This article was prepared and edited by the MIE team Austria and copying it without mentioning the source is against the law and will be prosecuted. Ancillary costs include:
- Transfer tax
When you buy a house, you pay 2% of the value of the property to the government. The only time that you don’t need to pay this fee is when you buy a newly built property or when you buy a property from a seller who bought this property less than 6 months ago.
- notary public
You need a notary public to legally transfer this property into your name and to register it in the land registry. The cost of this procedure varies from 900 euros to about 2,000 euros, depending on the notary.
- Assessment
In case of getting a housing loan (mortgage), every bank or lender needs an official evaluation report. The cost of assessing the property depends on the size of the property, but it costs between 300 and 800 euros.
- Real estate agent/representative (if there is any)
You may want to hire a real estate agent to help you find a home and negotiate the price of the properties. Some of these people receive a fixed amount, usually between 500 and 3,000 euros. Others claim between 0.5 and 1.5 percent of the value of the property, and some receive a combination of the two.
- Checking the structure of the property (if there is any)
Depending on the size of the building, a structural inspection to inspect your home will cost between € 250 and € 900. These costs are tax deductible. This means that depending on your gross income can be reduced from 38% to 49%.
Ways of searching for a property in the Netherlands
There are several ways to search for a property in the Netherlands. You can go to different online property portals. Some of which are also available in English. Or you can search local newspapers or Free property bonds.
Leave a Reply
Want to join the discussion?Feel free to contribute!