The process of real estate purchase in the Netherlands usually takes up to three months. You must keep in mind that the buyer generally pays costs but some of them are not are tax-deductible. Usually a six percent above the initial amount is advisable to be kept aside in order to cover all the encountered expenses.
Process of Dutch real estate purchase. The Makelaar (Dutch real estate agent) will handle all the steps necessary before buying a real estate in the Netherlands such as finding the appropriate properties, arranging viewings, talking with the owners in order to convince them to ask for a fair price.
Once a verbal agreement
was reached, the makelaar is issuing a purchase deed
containing the details of the transaction
and the conditions of the acquisition
. In maximum 3 days from signing it, the buyer can change his mind but after this period, if deciding to drop the transaction, he must pay a fee. Just like in the case of an slovenian attorney
, A civil law attorney from Netherlands
is receiving this deed and makes sure that all the conditions are met. A deposit of maximum 10% of the purchase
is held by a notary until completion of the sale.
The Land Registry is asked regarding any existing mortgages on the endorsed property by the notary who will issue a document of transfer signed by him/her, by the buyer and by the seller. The buyer must keep in mind that there are several commissions and taxes (around 10-12% of the purchase price covering real estate agent and notary fees, land registry fees and a property transfer tax) payable.
The documents related to the real estate purchase must be stated in Dutch but it is advisable to have them also in the language of the foreign country, in order to know exactly what you are signing.
When the written statement is signed by both parties and the amounts necessary to cover the costs are paid a transfer contract is signed and the notaries inform the Land Registry regarding the transaction and the new owners.
Mortgage. When you are trying to find the best solution in order to purchase a Dutch Real Estate, you might consider asking for a mortgage. In order to request one up to five times your salary you must consider that the maximum mortgage obtainable is 106 percent of purchase price, you must have a permanent residence permit (certain exemptions are granted to some nationalities or individuals performing in a certain field of the economy), you are in full-time employment (or if you are self-employed a prove that there are certified accounts for the last three years and forecasts for the following year are available). Mortgages are usually arranged for a term of either twenty or thirty years, depending on the agreed conditions.
Leasehold or ‘erfpacht'. A characteristic of the Dutch real estate market is that certain properties (the number of it increases every year) are sold but not the ground on which are build. For this, an annual rent is paid to the owner, which in certain cases can be the Dutch Government.
General tips for buying real estate in the Netherlands. In the beginning of the process of real estate purchase in the Netherlands it is advisable to contact a specialized agency instead of contacting directly the owners. This way, you can have a trustworthy individual who’s familiar with the Dutch Specific and can ensure that you have maximum advantages from the action.
Of course it is advisable to make a research of the Dutch market and see exactly how it is different from the one from home. A detailed verification of the Dutch realities can save you from paying too much for a property or, more seriously, breaking the specific rules of Dutch real estate acquisition.
If it is not possible to be in person in Netherlands and to watch closely the process, it is advisable to hire a professional attorney
specialized in such activities in order to best represent your interests. This is a common procedure in most European countries, like Switzerland
for exemple, and its main purpose is to ensure that the Dutch regulations are not preventing you from staying in a real estate just bought.
Advantages of buying real estate in the Netherlands. A series of privileges are granted if you decide to move to the Netherlands. For instance, there are no interest payments on mortgages if you are a resident taxpayer or if the property is used as the primary residence. Also the following costs are deductible: the costs to conclude the contract, the commission for the bank and the valuation report (which is asked by the bank) and the notary costs related to the mortgage. There is no capital gains tax so any increase in the value of your house is not taxable.