Buying property in the Netherlands is quite simple. There are hardly any restrictions for non-residents to buy a house or a property. Foreign funds can be transferred to a Dutch notary, who will forward the funds to the seller of the property as soon as all the paperwork has been completed, and the ownership of the property has been updated.
The Netherlands has no currency exchange controls, and basically, anybody can open a Dutch bank account, and/or convert foreign currencies to Euros (EUR).
If you are planning to reside in the Netherlands as an expatriate, it is possible to apply for a mortgage to buy your first house with a variety of choices present. It is now a little easier for non-Dutch citizens to obtain a mortgage in the Netherlands because of the recently increased expat options provided by Dutch banks.
However, there are many factors that play a role in obtaining a mortgage.
If you want to take out a mortgage without a Dutch nationality or citizenship, mortgage lenders will not only consider your nationality, but will also consider factors such as:
- the type of income you have
- whether or not you have an employment agreement for an indefinite period
- your family status (and expenses)
The risk of the mortgage lender/bank
The mortgage lender runs several risks when a foreigner without a Dutch passport purchases a home in the Netherlands. The largest risk is that someone who may go back to another country and break the agreement receives a mortgage in the Netherlands. Banks attempted to provide mortgages to expats a few years ago. What happened? The restrictions were very carefully followed by expats. Banks currently perceive lower risks as a result.
Around 90% of the income is considered in determining the maximum mortgage for foreigners. As a result, the bank can manage its risks.
An expat (non-resident) can borrow less
Expats with incomes in currencies other than the euro can borrow less than those with incomes in euros because only 90% of their income is considered. However, there are still numerous chances for foreigners to purchase a Dutch property.
Residency Permit in the Netherlands
Buying a house in the Netherlands without having a residence permit is not an issue. Unfortunately, it is true that you do not automatically get a residence permit when you buy a property in the Netherlands. This takes additional time and effort.
Our launch team can inform you on how to obtain mortgage or a residency permit in the Netherlands!
This guide is part of Legal Assistance Netherlands in our Launch Guide.
