Financing and legal aspects - Mortgages & Taxes in The Netherlands
Arranging your finances is not the most fun part, but nonetheless it’s all important in the process of buying a house in Amsterdam. In fact, expatriates in Amsterdam often get their financial checkup done even before searching for the right apartment or house, just to have a clear picture of the financial possibilities.
Mortgage for your home in Amsterdam
When you’re unfamiliar with the Amsterdam housing situation, there’s no way to get this done but to get in contact with an independent financial advisor, who will then make a complete financial checkup to give you an accurate indication of your financial possibilities and the options for different types of mortgages you have. The process of performing this checkup is rather complicated, as there are a lot of legal arrangements concerning expats and home owners. An interesting example is the “thirty per cent arrangement,” which allows expats a total of thirty per cent of their income to be entirely tax free; your taxes are paid according to the remaining seventy per cent. Also, buying a house in the Netherlands is financially very appealing, as the mortgage interest is tax-deductible. The exact workings of all the financial rules, laws and possibilities are complicating, making it vital to have an independent financial advisor to help you get a clear picture of your financial possibilities. You simply can’t do without. Nevertheless, once you’ve got a clear picture of your possibilities, you’ll be able to really get down to business and start bargaining!
Shortlist: buying an apartment which is for sale in Amsterdam
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We offer a free financial checkup for expats, so you know how much you can spend on a house. If you're interested, get in touch with us!
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The Netherlands has a very economic friendly climate for buying a house. The government gives tax deduction to people who buy a house, among other things.
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Expenses relating to the buying of the house are often tax deductible as well (notary costs, contract costs).
- Buying property in Amsterdam? Very interesting! The 30 percent ruling is a tax advantage for expats working in the Netherlands. If a number of conditions are met, the employer is allowed to grant a tax free allowance amounting to 30 percent times 100/ 70 of the gross salary subject to Dutch payroll tax. This results in a maximum (effective) tax rate of approximately 36.4 percent. This tax free allowance is considered as compensation for expenses a foreign employee has for working outside their home country.
Next step in the guide is: Bidding And Buying
