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Buy-to-let mortgages in the Netherlands (third party content)

White wooden shutter on Amsterdam housesIn some countries buying property to rent out is a popular investment. So what is the situation in the Netherlands? Henk van Seijen of financial advisory group Finsens has the low-down.

Expats often come to us asking whether it would be possible for them to purchase a apartment to rent out. This is because apartments and residences in the large Dutch cities are considered an interesting investment. In addition to rental income, the properties also go up in value. Obviously these properties may be purchased with private cash. But recently, taking out a mortgage has become an option.

On behalf of the expat community, we have investigated the requirements. Expats must have spent at least three years living and working in the Netherlands. Their minimum gross income should be €45,000 per year and they must have EU nationality.

Another significant detail is that private cash is required at all times. The bank will expect buyers to invest roughly 40% of the purchase price from their own resources.

Provided the above conditions are met, it is possible to request a mortgage. The bank will set yet a few more conditions regarding (the rental of) the apartment. For instance, you will need to have a permanent tenant. Short term rentals via AirBnB and the like are not allowed.


The bank will only finance apartments and residences located in large cities because the risk that they will become vacant is low.

Up to 50% of the value of the property can be paid off (with a maximum period of 30 years). If the mortgage is higher, then this part of the mortgage needs to be repaid over 10 years. In addition, the rental income on the property needs to exceed the interest and repayment in the first year.

The tax consequences are as follows: you will have to pay 1.2% levy on the value of the apartment less the mortgage. This is the box 3 levy in terms of income tax.

If you would like to find out more about buy-to-let mortgages, please feel free to contact our team at or 020-6234447.

Henk van Seijen is a partner at Finsens, specialists in rendering services to expats in the areas of tax, mortgages and investment advice.

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