Maximize Your Tax Refund: Essential Deductions for Dutch Homeowners

As the Dutch tax season is underway, homeowners have valuable opportunities to reduce their taxable income through specific deductions. Understanding and applying these can lead to significant tax refunds.​

Key Tax Deductions for Homeowners

 

1. Mortgage Interest Deduction: Homeowners in the Netherlands can deduct the interest paid on their mortgage from their taxable income, provided the loan is used for purchasing or improving their primary residence.​ A requirement is that the loan is paid off in a maximum period of 30 years on either an annuity or linear repayment scheme.

 

2. One-Off Tax-Deductible Mortgage Costs: When purchasing a property, several one-time expenses are tax-deductible in the first year, including:

 

• Mortgage advisory and brokerage fees
• Notary fees related to the mortgage deed
• Valuation costs for the property
• Costs for obtaining National Mortgage Guarantee (NHG) if applicable
• Mortgage deed registration fees

 

These costs can be substantial and claiming them can result in a significant tax refund if the first year when you own the property.

 

3. Provisional Tax Rebate: Instead of waiting for the annual tax return at the end of the year, homeowners can apply for a provisional tax rebate “voorlopige teruggaaf” to receive anticipated deductions monthly. This is particularly beneficial for first-time buyers who have made significant one-off costs or in times like now when the interest rates are considered a bit higher so the refund is larger.

 

Tips for Accurate Tax Filing

 

While the Dutch tax authority provides pre-filled tax returns, it’s crucial to verify and if necessary, correct the information, especially concerning mortgage details and deductible one off mortgage costs.

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In your first year owning a property you can file a provisional rebate and claim the estimated interest you will be paying that year as well as the one off mortgage costs. As mentioned earlier it can be paid out to you on a monthly basis. Do be aware that clients who bought a property somewhere more towards the middle of the year, that in the year after the first you will also need to manually file a provision tax rebate with the estimated interest paid in the second year, which is a full year. The Dutch tax authority does not automatically consider this, so if you forget to manually change your provisional tax rebate then you will suddenly get a whole lot less.

 

If you bought a property together with your partner you will automatically become fiscal partners. This also means you can allocate the interest tax rebate to one person or the other or combination of it. This is the final section of applying for the tax rebate and often allocating it to the partner earning less leads to a higher tax rebate, unless that partner is hardly paying any taxes to begin with. 

 

Consult a Professional Tax Advisor: Tax regulations can be complex. Getting advice from a tax advisor can ensure all eligible deductions are claimed.​ Half of clients use a tax advisor.

 

At Independent Expat Finance, we specialize in assisting expats with the Dutch mortgage and tax systems. Our experts can guide you through the process of claiming all relevant deductions but we do not file your actual taxes, this is something you will need to do yourself or via a tax advisor.

 

Contact us today to ensure you’re maximizing your tax refund and making the most of your homeowner benefits in the Netherlands.

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

ING Introduces New Mortgage Interest Rate Structure Based on Energy Label

Starting April 30th 2025, ING implemented a new, more granular approach to mortgage pricing—offering different interest rates based on a property’s energy label. This change marks a significant shift from their previous model, which only rewarded homeowners with a discount for improving their property to energy label A or higher. The new system offers varying interest rates across all energy labels, creating both opportunities and incentives for homeowners to improve the energy performance of their property.

What’s Changing for ING Mortgage Clients

 

• Tiered Interest Rates by Energy Label:

 

From April 30th, clients will receive a specific interest rate depending on the energy label of their home, ranging from G (least efficient) to A++++ (most efficient). With a D label you get a discount of 0,03%, with a C label 0,06%, with B label 0,09%, with A label 0,12% and A+ or better even 0,15%.

 

This rewards buyers of already efficient homes and further encourages sustainability-driven renovations for less efficient properties.

 

• No Need to Wait for Fixed-Rate Renewal:

 

Homeowners who improve their property’s energy label can request a new, lower interest rate during their fixed-rate term, rather than having to wait for the next term to begin.

 

• Automatic Loan-to-Value (LTV) Category Adjustments:

 

In a major customer-friendly update, ING will also begin automatically adjusting the LTV risk category when the mortgage balance drops into a lower tier based on the home’s current market value. This means borrowers no longer need to request a review to benefit from a better risk profile—potentially unlocking a lower interest rate sooner.

 

Why This Matters for Expats

 

These updates make ING’s mortgage offering more dynamic, fair, and sustainability-oriented. Whether you’re buying a new home or looking to refinance, these changes could have a meaningful impact on the total cost of your mortgage.

 

Independent Expat Finance: Fast-Track ING Mortgage Applications

 

As an official ING priority partner, Independent Expat Finance provides a priority service—any mortgage application submitted through us is reviewed within 24 hours, compared to the standard processing timeline. This ensures faster approvals and timely access to favourable new rates.

 

Our Advice

 

If you’re considering buying a home or improving the energy efficiency of your current property, now is an excellent time to act. With ING’s new tiered pricing and auto-adjusting LTV categories, there are more ways than ever to save on your mortgage costs.

 

Get in touch with us today to explore how these changes could benefit you and to receive expert, expat-focused mortgage advice.

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Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

Global Tariffs and Their Influence on Dutch Mortgage Interest Rates

In the past year, Dutch mortgage interest rates have experienced a downward trend, particularly for shorter fixed-term mortgages. This decline is largely attributed to the European Central Bank’s (ECB) series of rate cuts aimed at stimulating economic growth amid global dropping and inflationary pressures.​

ECB’s Monetary Policy Amid Global Tariffs

 

The ECB has been proactive in adjusting its monetary policy in response to the economic uncertainties brought about by global tariffs, especially those imposed by the United States. Since June 2024, the ECB has reduced its key deposit rate six times, bringing it down to 2.50%. A further cut to 2.25% is anticipated in the upcoming policy meeting on April 17, 2025. ​

These rate cuts are designed to counteract the negative impact of tariffs on the Eurozone economy, which include reduced business sentiment and potential declines in growth. By lowering interest rates, the ECB aims to make borrowing more affordable, thereby encouraging investment and consumption.​

 

Impact on Dutch Mortgage Rates

 

The ECB’s monetary easing has had a direct effect on mortgage interest rates in the Netherlands. As capital market rates decline, Dutch mortgage providers have adjusted their offerings accordingly. For instance, the average interest rate for a 10-year fixed mortgage with National Mortgage Guarantee (NHG) protection has decreased with 0,5%  over the past year. ​

Shorter fixed-term mortgages have seen more pronounced reductions, with rates for 1 to 5-year fixed terms also experiencing notable declines of around 1%. This trend is particularly beneficial for first-time buyers that are buying well within their budget and those looking to refinance, as lower interest rates translate to reduced monthly payments and increased borrowing capacity.​

 

Looking Ahead

 

While the current trajectory suggests a continued decline in mortgage interest rates, it’s important to consider potential variables. The ECB’s future policy decisions will depend on evolving economic indicators, including inflation rates and the broader impact of global trade policies.​ We expect that in the coming 6 months the 10 year interest fixed term will drop another 0,25% and the 1 to 5-year fixed term to drop with another 0,60%. 

For prospective homeowners and investors, this period presents an opportune moment to explore mortgage options. Independent Expat Finance remains committed to providing expert guidance tailored to the unique needs of expatriates navigating the Dutch housing market.​

Book a free mortgage intake meeting

 

For personalized advice and to explore the best mortgage options available, contact Independent Expat Finance today.

Dutch mortgage interest rate expectations for 2025

Mortgage interest rates have remained relatively stable between 4% and 5% from early 2023 through mid-2024. As we enter the final quarter of 2024 and rates begin to decline, it’s a good time to assess what the coming months and 2025 might bring. While predicting future rates can be challenging, we generally advise fixing your mortgage rate for a shorter term when rates are high or falling. On the other hand, if rates are low or expected to rise, opting for a longer fixed term is often wiser.

Unusual Interest Rate Patterns in 2024

 

In 2024, shorter fixed-term interest rates, like variable rates and 1- or 3-year fixed terms, were often higher than medium-term rates such as 5- or 10-year fixed terms. This “inverted” rate structure is uncommon since longer-term rates usually carry a premium due to the added security they provide. Looking ahead to 2025, what can we expect in terms of mortgage interest rates?

Inflation Trends in 2024 and 2025

 

Mortgage interest rates are closely linked to inflation. In 2024, inflation has gradually normalized following the significant spikes of the past two years. However, wage increases driven by union negotiations and high demand for workers have slowed the decline. Currently, inflation within the European Central Bank (ECB) zone stands at 1.8%, slightly below the ECB’s 2% target. The ECB’s goal now is to maintain inflation close to 2%, without letting it drop much further.

Capital Market and Interest Rates

 

As the economy cools, inflation continues to decrease. In August 2024, the ECB reduced its interest rate by 0.25% for the first time since 2020. The forecast for the remainder of 2024 includes another 0.25% reduction, with projections for 2025 suggesting three or four additional 0.25% cuts. This could result in a total rate reduction of around 1% by the end of next year.

Mortgage Interest Rate Outlook for 2025

 

Mortgage advisors closely monitor capital markets and 10-year government bonds, which serve as key indicators for longer-term mortgage rates. In 2024, these rates have hovered between 2.5% and 2.9%, indicating little movement in long-term mortgage rates. Meanwhile, the ECB Euribor rates, which affect shorter-term interest rates such as variable, 1-year, and 3-year rates, have dropped from 3.9% to 3.2%. As a result, major Dutch mortgage providers like ABN AMRO, ING, Rabobank, and Obvion have reduced their rates for shorter fixed terms. Looking ahead, we anticipate that shorter-term rates could fall by an additional 1% in 2025, while longer-term rates may decline by around 0.5%.

Is Now a Good Time to Buy a Property?

 

With mortgage interest rates falling and incomes rising, the Dutch housing market is seeing renewed pressure on prices. Rabobank projects a 10% increase in property values for 2025. In some cases, properties in popular locations or with unique features are attracting bids well above their asking prices, with overbidding amounts of €50,000 to €125,000 becoming common again.

However, not all properties are experiencing the same level of demand. Some homes remain on the market longer, allowing room for price negotiation. For first-time buyers, particularly those with lower to moderate incomes or single-income households, the current market can be challenging. In contrast, higher-income buyers, families with dual incomes, or those who already own property are finding conditions favourable for purchasing. All in all, if you’re an expat and planning on living in The Netherlands for a longer period of time, we think it makes more sense to buy a home.

Request a free mortgage intake meeting

 

Give us a call or fill in our contact form below if you are interested to discuss further with one of our mortgage advisors. 

National Mortgage Guarantee (NHG) limit increases to € 450,000 and participation becomes cheaper

The Dutch National Mortgage Guarantee (Nationale Hypotheek Garantie, or NHG) is set to undergo changes in 2025, as the maximum mortgage limit will increase to € 450,000. Additionally the cost of enrolling in the NHG program will be substantially reduced from 0,6% of the mortgage amount to 0,4%. This will make it up to €1,000 cheaper for homebuyers to participate in the scheme.

Higher NHG limit for mortgages

 

NHG is a financial safety net designed to protect homeowners who face difficulties in paying their mortgages due to unforeseen circumstances, such as passing away of a partner or divorce. At the moment NHG covers mortgages up to € 435,000. However, from 2025, the NHG limit will be raised to € 450,000. This increase reflects the rising house prices across the Netherlands, providing more homeowners access to the program.

 

Moreover, if homeowners take energy-saving measures such as installing insulation, solar panels or HR++ windows, they will be allowed to borrow even more. In these cases, NHG limit will be raised to € 477,000, encouraging sustainable home improvements.

 

NHG as a safety net for homeowners

 

The primary purpose of the NHG is to protect homeowners from being burdened with residual debt if they can no longer meet their mortgage payments. If homeowners fall into financial distress, a mortgage advisor can possibly provide more assistance to work out an arrangement that allows the homeowner to remain in their home.

 

NHG also provides an advantage by reducing the interest rate homeowners pay to the bank. This is because the Dutch government guarantees the NHG, which lowers the risk for banks, translating into lower interest rates for borrowers. Often the interest rate is with NHG is 0,5% lower vs the rate of a regular mortgage when financing 100% on the value of the property.

 

Reduced participation costs

 

One of the key changes coming in 2025 is the reduction in the fee homeowners must pay to participate in the NHG scheme, known as the guarantee fee or “borgtochtprovisie.” This fee will be reduced from 0.6% to 0.4% of the mortgage amount. For someone taking out a mortgage at the new maximum limit of € 450,000, this reduction translates into savings of approximately € 1,000.

 

NHG’s widespread usage and growing fund

 

Around 40% of all homeowners in the Netherlands have a mortgage secured with an NHG guarantee. Despite the growing popularity of the NHG program, it is notable that the increase in the NHG limit does not fully keep pace with the rapid rise in housing prices. While the NHG limit is set to rise by about 3.5%, house prices in 2024 have risen by approximately 12%.

 

The reason for this discrepancy is that the NHG limit is calculated based on house prices from the past 27 months, which are lower than current market values. As a result, the NHG cap doesn’t fully align with today’s housing costs, potentially leaving some homeowners outside the program’s coverage range.

 

NHG’s expanding role

 

The rising house prices have also resulted in a growing reserve fund managed by NHG. This fund, which now stands at € 1.7 billion, is set aside to assist homeowners in financial distress. In 2023, only 30 homeowners who encountered mortgage problems required help from this fund. As the reserve continues to grow, NHG is exploring new ways to use the money to address broader housing challenges.

 

Conclusion

 

The changes to the National Mortgage Guarantee in 2025 aim to make homeownership more accessible and affordable for Dutch buyers, especially given the rapid increase in house prices. The higher mortgage limit, combined with lower participation costs, provides a stronger financial safety net for homeowners. As of the end of December 2024 home buyers can make use of the new NHG limit and lower fee. If you want more information reach out to us to schedule a call with one of our mortgage advisors.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Housing prices in the Netherlands: highest increase in two years

Housing prices in the Netherlands have seen another significant increase over the past month. Buyers paid, on average, 11.4% more for a home compared to the same period last year, marking the largest price increase in two years. This steep rise is especially evident in the province of Utrecht.

Average Home Prices in the Netherlands

 

According to recent data from Statistics Netherlands (CBS) and the Land Registry (Kadaster), the average price paid for an existing home last month was €466,890. These figures focus solely on existing homes, with newly built properties being excluded from the analysis.

 

For years, house prices in the Netherlands have been on an upward trajectory, driven by high demand and a limited supply of available homes. The only exception was the period between mid-2022 and mid-2023, when price increases temporarily slowed. However, after this brief pause, the prices started climbing again, with current prices now standing nearly 7% higher than the previous peak in July 2022.

 

Regional Variations: Utrecht Leads the Way

 

The rising trend in housing prices has been observed across nearly all regions in the Netherlands, with the exception of Zeeland, where prices increased by less than 10% over the last quarter. Nevertheless, even in Zeeland, homebuyers still paid 6.9% more compared to the same period the previous year.

 

The sharpest rise was seen in the province of Utrecht, where prices jumped by 14.4%. This significant increase is partly due to the housing market in the city of Utrecht, where prices surged by a staggering 18.4% over the last quarter compared to the same period last year. This makes Utrecht stand out significantly, surpassing other major cities like Amsterdam, where prices rose by 10.1%, and Rotterdam, which saw an 8.9% increase.

 

More Homes Changing Hands Despite High Prices

 

Despite the sharp rise in housing costs, more people have managed to buy homes. In every Dutch province, more homes were sold last quarter compared to a year earlier. In total, 54,147 homes were sold across the country, representing a 15.3% increase in the number of transactions compared to the same period in the previous year. Apartments, in particular, have been selling at a much higher rate.

 

What’s Driving the Price Increases?

 

The rapid increase in house prices can largely be attributed to the high demand for homes combined with a shortage of supply. With fewer homes available and a strong demand, competition among buyers has driven up prices. The lack of sufficient new housing projects also plays a key role, as construction has not been able to keep pace with the growing population and demand for homes, especially in urban areas.

 

Outlook for the Dutch Housing Market

 

Looking ahead, it’s unclear whether housing prices will continue their rapid ascent, but the current trend suggests that the market is still highly competitive. The affordability of homes, especially for first-time buyers, is becoming increasingly challenging, even as more transactions are taking place. As long as the imbalance between supply and demand remains, housing prices are likely to stay elevated, particularly in high-demand areas like Utrecht and Amsterdam.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Taking low mortgage rates with you when moving

House prices are on the rise again. So-called “second time buyers” who sell their old homes can often benefit from the increased value of their old property when purchasing a new house.  However, it’s important to consider what happens with the old mortgage, especially regarding the mortgage interest rate.  

Homeowners who, for example, want to take an old mortgage with a relatively low interest rate to a new home need to pay extra attention. This is likely to become even more important in the coming years due to a shift in the interest rate market that occurred two years ago.

 

Between 2016 and the end of 2021, mortgage rates were relatively low. At the lowest point, you could even lock in long-term mortgage rates at around 1.5%. Since 2022, however, mortgage rates have risen sharply, and they have now been hovering around levels of about 4.5% for some  time and in the last few weeks have dropped to below 4.0%.  

 

1) Timing of Selling the Old and Buying the New Home  

 

If you buy a new home before selling your old one, you need to check with the lender whether you can carry over the old mortgage rate. It is important to notify them in time. With some lenders, you may lose the option to transfer the old rate if you notify them too late.  

 

On the other hand, you should also be cautious if you sell your old home first, pay off the associated mortgage, and then buy a new home. It’s also important to know whether the lender enforces a certain time period between paying off the old mortgage and finalizing the mortgage for the new home at the notary. 

 

2) From an NHG Mortgage to a Non-NHG Mortgage 

 

It’s possible that you initially took out a mortgage with NHG (National Mortgage Guarantee), which under certain conditions covers the repayment of any residual debt if homeowners face financial difficulties and can no longer afford the mortgage. NHG mortgages typically come with a slightly lower interest rate compared to mortgages without NHG insurance. 

 

But what if you want to take out a mortgage for your new home without NHG coverage? In this case, there’s usually an interest rate surcharge compared to the NHG mortgage, and you’ll need to check the terms regarding carrying over the mortgage interest rate when moving.  

 

3) What About the Affordability Test Interest Rate? 

 

One factor that can affect old mortgages when moving is the remaining fixed-interest period. If this period is less than ten years, lenders use a relatively high “affordability test interest rate” of at least 5% for determining the maximum mortgage amount. This could reduce your total borrowing capacity. 

 

In such cases, taking out a new mortgage with a longer fixed-interest period based on current rates may be more practical, especially considering the maximum mortgage amount.  

 

4) Divorce: Splitting a Low Mortgage Interest Rate is Usually Not Possible  

 

We also would like to point out that in the event of a divorce, it’s usually not possible to split the mortgage and allow both partners to keep the low mortgage interest rate. At many lenders, only one of the two partners is allowed to retain the low rate, and the other must give permission for  this.  

 

5) Switching to Another Lender  

 

Carrying over a low mortgage interest rate automatically means staying with the same lender when moving. However, if you have a relatively short remaining fixed-interest period and your current lender’s rates are less attractive than those of the competition, it might be worth considering switching to another lender. 

 

Overall, if you have a low interest rate on your current home it is always worthwhile to discuss your situation and possibilities with one of our mortgage advisors. 

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Purchasing a house in The Netherlands: how we can help with placing a bid without a financial clause

With the housing market in The Netherlands overheating again, many client are asking if they can place an offer without a financial clause for a pending mortgage approval. In this tight market this can make the difference whether or not you are successful with a bid. There is nothing more annoying then having the best offer but another competitor takes the price with a lower offer simply because they did not have any conditions on it. Well, we have some good news for you. With our special priority services clients can place an offer without financial conditions. Let us explain how it works.

How does a financial clause work?

 

When your bid on a property is accepted, the seller’s agent or the notary will draft a purchase agreement. Once you sign this, you legally always have three days in which you can still back out or change your mind without a penalty. After that the penalty could be 10% of the purchase amount.

 

As the mortgage is normally not approved in three days, a mortgage advisor or agent will recommend you to put in a condition on your offer that you require three or four weeks to get your mortgage approved. During this period if you mortgage gets declined, you can back out without a penalty. So the financial clause is there to protect the buyer, but it leads to uncertainty for a longer period of time for the seller.

 

If you’re not sure if you can get a mortgage approved for the purchase amount, bidding without a financing condition is quite risky. However, in this market, it is a popular option at the moment. It makes your bid much more attractive: the seller is almost certain that their house will be sold in just three days. It’s therefore common for sellers to prefer the offer without conditions, not necessarily even the highest bid!

 

Why can you remove the financial clause if you work with Independent Expat Finance?

 

Our company has access to almost all mortgage providers in The Netherlands. But with two of the biggest providers, ABN AMRO Bank and ING Bank, we have a priority service. This means that once we submit a complete mortgage application to either, we have an agreement with them that they will review the application on the next business day at latest. Good preparation is important but if we have all the documents necessary for the application ahead of signing the purchase agreement, we could get an approval a day later. Or at the worst, we have feedback of the mortgage provider if anything needs to be adjusted or extra documents are required. All of this within the three day cool off period. If it doesn’t work out, you can still withdraw from the purchase free of charge.

 

How can you make use of our priority service?

 

For starts, get in contact with via our website or phone number to schedule an intake session. During our intake session, it is one of the subjects we will discuss as there are some conditions for making use of this service.

 

For the priority service the secret lies in a good preparation on both the client side as well as on our end. Having all your income documents (also possible for entrepreneurs or self employed) ready and checked by us ahead of signing the purchase agreement is first of all necessary. Secondly, having a valuation report ready and or demonstrating you have sufficient savings to pay for any difference in the valuation vs purchase price is important. Then once we submit the application, it is our job to make sure the mortgage providers starts reviewing your application within the service level agreement.

Request a free intake meeting

 

If you would like to discuss the current housing market and mortgage landscape, you can always reach out to us or to Nick from Your Dutch Home for an online intake session. These sessions are always free of charge.

Mortgage product explained: ABN AMRO’s Interest Reflection Period

In the realm of mortgage financing in the Netherlands, ABN AMRO stands as one of the most prominent players in the market, offering a diverse range of mortgage products tailored to meet the needs of homebuyers. One notable feature that sets ABN AMRO apart is its inclusion of an interest reflection period on certain interest fixed terms in their offering. In this article we want to explain why it can be useful and how to take full advantage of it.

When you are applying for a mortgage you will need to choose a fixed-rate mortgage and or a variable-rate mortgage. Over the last two years we have seen something interesting happen to mortgage interest rates. A 10 year interest fixed term rate on a regular mortgage went up rapidly from 1.5% to almost 5%. At the same time the shorter fixed terms like 1, 3 or 5 years as well as the variable-rate went up even further in some cases. That having been said, what should you do if you expect that within the coming years the rates will go down again? If you lock your rate for long you will either be stuck with it or have to likely pay a penalty to switch. If you go for a variable-rate or 1 year interest fixed term you will pay a high price at the moment and possibly only later will you benefit in case the rates go down but who knows when that will be.

 

This is where the interest reflection period mortgage product can come into play. The interest reflection period is a distinctive feature embedded in certain ABN AMRO mortgage interest fixed terms, such as the 2, 3, 7 or 12 interest fixed term. It allows borrowers to periodically reassess and adjust their mortgage interest rates in the final 12 or 24 months of the interest fixed term. Unlike traditional interest fixed terms that lock in a specific interest rate for the entire term (which is also the case with ABN AMRO’s 5 or 10 year interest fixed term), the interest reflection period offers borrowers the opportunity to adapt to future changes in the financial landscape.

 

Whilst writing this article ABN AMRO has a variable-rate of 5,40%. Their 1 year rate is 4,44% and 5 year rate is 3,47% (short term rates higher then longer terms we called inverted rates because normally it should be the other way around). Now ABN AMRO also has a 3 year rate of 3,79%, which is only slightly higher then the 5 year rate but significant better than the variable-rate or 1 year rate. And this 3 year rate also has a reflection period of 24 months. This means that in the final 24 months you can switch it to a different interest fixed term or variable-rate without a penalty. In that regard for us it does not make sense to consider their variable-rate or 1 year rate at the moment but rather their 3 year rate with the interest reflection period. On top of that we can also split the whole loan into different loan parts with a 3 year rate with the interest reflection period (giving you multiple options later) or after the first year is completed to switch it once more to a 3 year rate with an interest reflection period.

 

So if market rates have decreased, borrowers may benefit from lower interest rates, potentially reducing their overall mortgage costs earlier. If the rates stay the same or go up, a borrower will likely wait till later in the interest fixed term or the final moment at the end to switch.

 

ABN AMRO’s mortgage products with an interest reflection period provides a flexible and adaptive solutions to its customers. This unique feature empowers borrowers to navigate changing market conditions, ensuring that their mortgage remains aligned with their financial goals. As with any financial decision, prospective borrowers are encouraged to engage with our advisors to fully understand the implications of the interest reflection period and make informed choices that best suit their individual needs.

Request a free mortgage intake meeting

 

Give us a call or fill in our contact form below if you are interested to discuss further with one of our mortgage advisors. 

Renting your home on Airbnb: understanding the rules in the Netherlands

Renting out your own home on Airbnb sounds like an interesting opportunity to earn extra income right? But is it allowed without breaking any rules? In this guide, we’ll walk you through the regulations that apply.

 

At present, the Netherlands boasts over 75,000 available Airbnb accommodations. While this benefits tourists, it can pose challenges for municipalities and residents, occasionally leading to disturbances from an influx of tourists in residential areas. For a long time, there was no clear legislation regarding renting out your property on Airbnb. However, since 2021, a significant change took place with an amendment to the Housing Act, specifically the Tourist Rental of Residential Space Act. This amendment empowers municipalities to intervene if necessary, considering the liveability of the residential environment.

What actions can municipalities take to regulate Airbnb rentals?

 

• Registration Requirement: Offering residential space without a registration number is strictly prohibited, aiding efficient enforcement.
• Nightly Limits: Some municipalities, such as Amsterdam, have imposed a maximum of 30 nights per year for rentals.
• Notification Obligation: Landlords may need to notify the municipality in advance, facilitating compliance checks.
• Licensing Requirement: In addition to registration, landlords may need a permit for tourist rentals. This measure is applied when registration or notification obligations prove ineffective.

 

The extent to which municipalities apply these measures varies, and those considering Airbnb rentals should check with their local municipality for specific guidelines.

Other Considerations for Airbnb Rentals

 

In addition to the municipal regulations, there are other factors to consider. You must be the owner of the property you intend to rent out. Renting out a property you’re leasing is generally not allowed unless you have permission from the owner and Owner’s Association.

 

If you have a mortgage, you need to seek approval from your mortgage lender before renting out your property. The permissibility of renting out your purchased home on Airbnb depends on your mortgage terms and involvement with a Homeowners’ Association. Check your mortgage terms for any restrictions on renting out your property. Some banks, like ABN Amro, may prohibit long-term rentals, and interpretations regarding short-term rentals like Airbnb can vary.. It’s crucial to review the specific conditions of your mortgage provider.

 

Homeowners’ Association: If you are part of a Homeowners’ Association, approval is typically required for commercial use of your property. Non-compliance may result in fines or legal consequences, as outlined in the association’s rules.

 

For those without a mortgage or Homeowners’ Association affiliation, renting out your home on Airbnb is generally permissible, although regulations in Amsterdam may necessitate mandatory registration with the municipality.

Do I Need to Pay Taxes When Renting Out My Home on Airbnb?

 

When temporarily renting out your purchased home, the tax authorities consider this as income from your property. Such income falls under Box 1 (taxable income from work and home). You are required to add 70% of the rental income to your total income. However, you can deduct related expenses, such as cleaning costs and utilities.

Example:

 

You earn € 2.000,- by renting your home for two weeks. After deducting cleaning costs (€ 50,- each for pre and post-guest cleaning) and € 50,- for utilities, you have incurred total costs of € 150,-.

 

Calculation: € 2.000,- € 150,- = € 1.850,-

 

You are then required to declare 70% of this amount to the tax authorities.

 

Final Calculation: € 1.850,- * 0.70 = € 1.295,-

 

Ultimately, you need to add € 1.295,- to your taxable income derived from your property.

 

In conclusion, while Airbnb can be a lucrative option, it is crucial to be aware of and adhere to the rules and regulations governing short-term rentals in your area, ensuring a smooth and lawful experience for both hosts and guests.

Request a free mortgage intake meeting

 

Give us a call or fill in our contact form below if you are interested to discuss further with one of our mortgage advisors.