Considering buying an apartment as an expat? Here is what you need to know.

Considering buying an apartment as an expat? Here is what you need to know.

Buying an apartment can be more cost-effective in the long-term than renting, especially as rental prices have soared — it’s not uncommon to pay €1,600 for a small one-bedroom. So, if you’re considering purchasing an apartment, the first step is to schedule a meeting with your bank to determine how much mortgage you may qualify for based on your income. You might come across independent financial advisors that agencies work with, but it is not necessary, as banks provide that assistance.

Once you have selected an apartment or a house to your liking, your bank will appoint a person to evaluate the property and make a so-called appraisal report or “taxatieraport” in Dutch so the loan can be approved. The fees for the evaluator are between €400 and € 900.

The seller is obliged to provide a document that explains the state of the property – in which you will find the year it was built, the energy label, repairs that are made or need to be made in the future, when it was last renovated etc. It is advised to seek an independent contractor, which can cost between €270 – €450.

Upon signing of the contract, 10% of the property value is paid to the seller in advance, in some cases, that can be negotiated. Additional fees that you may encounter are the transfer tax of 2%, which, if you are under 35 and it is your first time buying a property, you can receive a tax benefit and not pay the 2%. The fee of brokers is between 1% to 2% of the property value, usually paid by the seller unless you work with a broker.

The property ownership is official once the deed of transfer “leveringsakte” and mortgage deed “hypotheekakte” are signed before a notary. Notary fees typically range between €1,000–€2,000, depending on the complexity of the transaction. Both the buyer and seller can choose a notary to work with.

Beyond the purchase price and costs for utilities such as gas, water, and electricity, which are selected by you, prepare a budget for ongoing costs such as:

• Municipal taxes (gemeentelijke belastingen) – which are paid once a year
• Homeowners’ association (VvE) contributions (for apartments) – it will be stated at the notary how much the costs are.
• Building insurance
• Maintenance and repair costs

In some cities, especially Amsterdam, the land may be owned by the municipality rather than the homeowner. This is known as leasehold (erfpacht) and can involve annual payments or future cost increases, which should be carefully reviewed before purchasing. If you work with a private investor, you might need to sell the land to them and pay a leasehold on it.

In the Netherlands, you can opt for a tax relief (hypotheekrenteaftrek) on your mortgage. You can receive money back either monthly or yearly, typically 36% of your interest, depending on your income tax bracket.

The final signing of the deed and transfer of the apartment is done at an appointed notary. It can be chosen by the seller or buyer.