The BEST way for expats to buy a house in the Netherlands

Are you thinking about buying a house in the Netherlands? Lots of expats do at some point during their stay. With the sky-high rental prices in most of the bigger Dutch cities, who can blame them? Especially due to the incredibly low interest rates on mortgages, the tax rebate on your interest payments and that you can sell your house again at any time and don’t need to pay a penalty for cancelling the mortgage. Or some expats even switch their residential mortgage to a buy-to-let mortgage as an investment when they move abroad again.

 

The process to buy a house in the Netherlands can be confusing though. Trust us, it’s confusing for everyone, not just for expats. It’s not like this is something you will often do. How many houses have you bought in your life?

 

Hiring an independent mortgage consultant is the easiest way to buy a house. And if you hire us, don’t worry about the fees. We’re licensed in the Netherlands to set up your mortgage and offer complete packages and transparent fees. And our fee is even tax deductible. It’s a win-win situation.

 

We know that you’re probably thinking: what’s the catch? But seriously, you can’t lose here. You get all the advice and help you need through one of our mortgage consultants that are specialized in working with expats and will guide you through the process till you get the keys to your new home.

 

Here’s how the process of buying a house works in the Netherlands – that is if you let us help you.

Step 1: Find out how much money you can borrow

 

Most people will need a mortgage to finance a home. So before placing a bid, it is smart to check how much you can spend. An online quick scan on your maximum mortgage capacity can give you an indication but not nearly as accurate as checking with our mortgage advisors. Some common misconceptions are that buyers think allowances such as a mobility allowance can be included or that a 30% ruling makes a big impact on how much you can borrow. Also, quick scans are mostly based on a standard mortgage set up with the interest fixed for 10 years whilst in fact your advisor will know some alternative set ups on which you can borrow more. You can book an intake with us to hear more about your possibilities.

Step 2: House hunting

 

Once your mortgage is calculated, you can start house hunting within your price range. Since 2018, you can only finance up to 100% of the property value. You can’t use your mortgage to buy furniture or pay for advisory, notary, or valuation costs. However, these costs are tax deductible if they are directly related to the mortgage application.

 

More important than ever, get yourself an agent. In the current market, sellers will always prefer an offer coming through an agent rather than yourself. They have a good network and it also shows you are taking it serious and willing to pay for it. We think this is even more a necessity for expats that are more inexperienced to the customs of the Dutch housing market. We can refer you to our network of agents that work in big cities like Amsterdam, Eindhoven, Rotterdam, Utrecht and Den Haag.

 

If you do decide to search for a house on your own that is possible as well. The website with the best selection in the Netherlands is Funda (www.funda.nl). Through that website, you can call the selling realtor and make an appointment to see the house. We also offer purchase guidance services for clients who are buying without an agent but do need some guidance in the process (such as going through the purchase agreement with you).

Step 3: Sign a provisional purchase agreement

 

Once you found a house and agreed on a price and conditions with the current homeowners, you can sign a provisional purchase agreement. Don’t let the word provisional confuse you, this is actually a binding contract. After signing the agreement, you have 3 days to change your mind. If you change your mind after those 3 days, you’ll have to pay a fine up to 10% of the agreed purchase price.

 

You can, however, put limiting conditions in the purchase agreement. Those conditions help dissolve the contract without having to pay the fine. One of the conditions often included is the financial clauses for your mortgage to be approved. It is also a good idea to include a condition for a technical inspection so you can make sure that the house doesn’t have any defects that can cost you a lot of money. If a major defect is found, the condition in your contract allows you to renegotiate the price or cancel the deal.

 

Next stop: back to your financial advisor to complete your mortgage application.

Step 4: Obtaining a mortgage for your new home

 

We collect and check all the documents required for your mortgage application. Throughout this entire process, you won’t ever be directly in touch with the mortgage provider. We do that for you. Once your mortgage has been is approved we will go through the mortgage offer with you so you understand exactly what you will be signing. When the mortgage provider finished processing your application, they send the file and instructions to pay out the money to the notary that you selected.

Step 5: Get the keys to your new home

 

The last step in the process is to go to the notary to sign a transfer deed (between your and the sellers) and mortgage deed (between you and the mortgage provider). At this appointment you meet the current homeowners and the notary will go through the deeds with you. The notary has also collected all the invoices and is in charge of collecting money or paying out to the involved parties. You will then receive the keys and the notary will register the deeds with the Dutch registrar Kadaster.

We couldn’t make this any easier

 

See how easy that was? You can expect us to guide you through every step of buying your new home. We’re all about making your life in the Netherlands as easy and comfortable as possible. That is why we don’t stop at helping you finance your new home. We also can set up your insurances or utilities such as water, electricity, gas, and internet. Or we can refer you to a tax advisor to help you set up the tax rebate. Just like with every other advice we give, we’re unbiased and give you options to choose from.

Imagine yourself sitting in your new living room after you’ve moved in. You are relaxed and your house is fully functional. You think to yourself: “I never moved house this fast and easy!”

 

Are you ready to get serious about buying a house? Contact us at info@inexpatfin.nl or fill in the contact form below to set up a free mortgage consult by phone, videochat or in person.

 

Or, read more about mortgages in the Netherlands.







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We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

Buying a house vs renting one

Did the Netherlands become your home more than you consider your home country to be? We have some great news for you! Expats are allowed to buy property in the Netherlands. Whether you see yourself live in the Netherlands forever or you think about buying a house for a good investment. Let’s go through all the benefits of buying a house in the Netherlands. 

 

This is why buying a house financially exceeds renting one by a mile.

How do the monthly mortgage payments and rental expenses stack up? 

 

Let’s start by comparing monthly expenses. To do this, we will use an example of a typical 75m2 apartment in Amsterdam.

You can expect to pay around €1500 a month when renting an apartment of 75m2 in Amsterdam. If you would buy the exact same apartment you would have to pay about €500.000. You could fully finance this with an annuity mortgage with the interest fixed at 1,75% for 10 years. This would mean your gross monthly expenses are €1667, net €1567 (net = gross – tax rebate). This seems a bit higher than the monthly rent.

However, the monthly mortgage payment consists of two elements, the interest payment and loan repayment. The average gross monthly interest payment over the full course of the mortgage is €279. This amount is the amount you need to pay the bank for closing the loan. Meaning, you will never see this money again. The rest amount, the average loan repayment, is €1388 a month. After paying this month after month, in about 30 years, you will have paid off your full mortgage.

So, at first glance the total mortgage expenses seemed like they were a bit higher than the renting expenses. But if you compare the money that you are throwing away, the interest payment to renting expenses. This makes buying a much better investment than renting. 

Also noted, when renting a property you can expect annual rental price increases due to inflation. Over time, this will make a big difference in the money you will lose. In case of a mortgage, yearly increases don’t exist. So you will never have to worry about inflation adjustments! 

What happens when I move abroad?

 

Over time you might consider moving abroad after living in the Netherlands for 10 years. Considering the example above for the 75m2 apartment in Amsterdam, your remaining mortgage debt will be €353.670 (started at €500.000).

Disregarding any house price increases or decreases, you will receive €500.000. The remainder of the debt will go to your bank account: €500.000 – €353.670 = €146.300. A nice return. Do you need to pay tax over this? No!

When moving abroad, renting out your apartment is another option. With a normal mortgage, most banks won’t allow this, as it might lower the value and renters can gain certain rights.

In this case, you could switch your mortgage to a buy-to-let mortgage, which is designed for the renting purpose. The interest will be a little bit higher and one of the conditions is that you can only finance up to about 70% of the value. In this scenario, after 10 years, this is the case, so renting out your place could be an interesting investment.

Explore your options with Independent Expat Finance!

 

If you want to explore your options, you can reach out to our expat mortgages specialists. Just fill in our contact form down below! Read more about expat morgages or expat insurances here! 







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

I bought a home and was wondering if I can include renovations in the mortgage?

You bought a beautiful home but the bathroom is a bit run down and needs some work. Or you bought a real fixer-upper that completely needs to be re-done. We often get the questions from clients how this works with a Dutch mortgage. It’s not too complicated but understanding how it works can save you a big head-ache later on.

The maximum loan-to-income (LTI) and the loan-to-value (LTV)

 

When you buy a home and apply for a mortgage banks look at two things: the maximum loan-to-income (LTI) and also the loan-to-value (LTV). You can never finance more than the lowest of the LTI or LTV. Including renovations generally has implications on the LTV, as you can expect that the renovations will increase the value of the property.

How many renovations can i include in my mortgage?

 

In order to determine how many renovations you can include we need to look at the LTV of the home. The appraiser will ask you to submit a specification of the renovations and how much you estimate it will cost before he or she visits the property. Anything which is attached to the home can be considered renovations, but be aware furniture is not for example. When the appraiser prepares the valuation report they will put two market values in the report rather than one: one value before renovations and one after renovations.

 

As a rule of thumb you can count on about 70% of the estimated costs of the renovations to be included in the value after renovations. This means the other 30% need to come from your own savings. So if your own savings are limited, then you can probably not include too much renovations in the mortgage. The money the bank is willing to put up for the renovations (70%) and likewise your part (30%) will be put on a designated bank account. Any receipts or invoices can be submitted after which the bank pays this out to you.

Let us go through a scenario to clarify how it works:

 

An apartment is listed for 350.000 euro on the market. Based on your income (LTI) the maximum mortgage you can get is 400.000 euro. It is a seller’s market and therefore you place a bid of 375.000 euro. Your bid gets accepted. On top of the one off fees and taxes for buying the home you have a buffer of 15.000 euro. You are contemplating to renovate the apartment and would like to know how much renovations you can include in the mortgage. 

 

Firstly, to be a bit cautious in our calculation, it is possible the value before renovations will be 5.000 euro less than what you paid for the apartment (as you placed a bid 25.000 eur over the asking price). So let’s put down a value of 370.000 euro before renovations. This means 5.000 is gone from your buffer and you have 10.000 euro left. If we approximately go with the general 70:30 rule on renovations it means that if you can put down 10.000 euro the bank can chip in 20.000 euro for renovations.

 

So, you can include renovations for about 30.000 euro in your specification that you share with the appraiser. If the value before renovations is like we assumed 370.000 euro then we can expect the value after renovations to be 390.000 euro. This is within your LTI limit of 400.000 euro, so you could get a mortgage for the lowest limit of the two which is 390.000 euro.

 

So in this case it is possible but you are limited to renovations for about 30.000 euro.

How can we help you with a property which needs some work?

 

If you are interested to buy a property which needs some work, definitely reach out to us early in the process so that we can run the numbers with you and see what is possible. Or, read more about expat morgages or expat insurances here! 







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

Personal loan in the Netherlands

A personal loan can be a great way to create extra financial capacity. You can use a consumer loan for many purposes, such as to renovate your home, buy household appliances or buy a car. Whether you’re interested in knowing if you can save money on your current personal loan, you want to apply for a loan or you just want a second opinion on interest rates, we are here to help you out.

Borrowing money in the Netherlands – how does it work?

 

First things first, what is a personal loan? Simply put, a personal loan in The Netherlands is a type of consumer credit that has monthly instalments, interest and a fixed term. Mostly, the loan is directly paid out to you as the borrower through a single payment. This form of lending provides the necessary certainty. This is because the amount of money you have to pay off the loan every month, is laid down beforehand.

Interest on a consumer loan

 

When taking out a loan in the Netherlands it is very important to pay attention to the interest rate you will have to pay. The higher the interest rate, the more expensive your loan will be. The monthly instalments are made up of a repayment and the interest payment and will be fixed throughout the term of the loan.

Applying for a personal loan


To apply for a personal loan as an expat in the Netherlands. Most lenders want you to meet the following requirements:

 

  • You have been working in the Netherlands for at least 1 year under a Dutch employers contract. In case of self-employment, you need to have at least your company figures of the last 3 years.
  • You have a positive credit history. (a positive registration at BKR )
  • If your nationality is not European: you need at least a residence permit with the following types: I, II, III, IV, V.

 

If you meet the foregoing criteria, you are ready to apply for your consumer loan.

How can we help you with a personal loan?

 

At Independent Expat Finance we can help you search and compare a wide range of loan offers from different lenders. We are an independent company and thus are able to give you unbiased information about the best deals. The interest rate you’ll be charged depends on your personal and financial circumstances. The terms over which you can pay back your loan is between 1 and 15 years. Independent Expat Finance can tell you all about the different rules and laws regarding loans for expats.

 

Formalisation of the loan agreement is quick and simple. We always grant the consumer loan without requesting any collateral. We offer personal loans through a carefully selected panel of loan providers, so it will always fit your personal and financial situation.

 

Get in touch to find out your best loan possibilities! Check out all information about applying for an expat mortgage or expat insurance here. 







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

Moving to the Netherlands as an expat – what to expect?

You’ve decided to take the plunge and are moving to the Netherlands to work here as an expat. You’re excited about this new adventure and you might be wondering what the Dutch are like, what the unwritten rules are, and just generally what you can expect from your soon-to-be home. Whether you come from another European country, the Americas, or Asia, you’re bound to notice some differences about the Dutch culture. We made a list of the five most noticeable things you will find out about the Dutch when you’re moving to the Netherlands.

1. Bikes Everywhere

If you’re moving to the Netherlands and you don’t know how to ride a bike, you better learn quickly. The Dutch ride their bikes pretty much everywhere. If you can reach your destination in biking in under half an hour, the Dutch will go by bike. And it’s not like they don’t have cars. They do, as the traffic jams will prove. They simply have the habit of riding their bikes.

 

Children learn two things from a very young age: swimming (because there’s water everywhere) and riding a bike. Also, given the parking fees in some cities, the bike is your best option to save money (and boy, the Dutch do not like to spend money on things they find wasteful).

 

So, start practicing now or take a biking class once you arrive in the Netherlands. And when you do go biking in the Netherlands, please don’t wear a helmet. At least, not if you don’t want to be the laughing stock of your company or neighborhood or frankly, anywhere you go.

Hey, where are you going with that helmet?

Bikes in the Netherlands - Independent Expat Finance

2. No privacy

The Dutch are very open people. There aren’t many taboos left in our society and we talk about almost anything. The Dutch lack of privacy is very clear at night when you walk past their houses. You will see families sitting in their living room, watching tv, or having dinner. That’s right, the houses in the Netherlands have big windows that aren’t decorated with drapes or anything to keep glaring eyes out. The Dutch can be very unapologetic: I do whatever I want in my house and I don’t care who sees it or what their opinion is. By the way, it’s totally cool if you look inside. Just nod if someone sees you do it.

Another thing that the Dutch are known for is their directness. You may find yourself being ‘interviewed’ by your colleagues or neighbors. And you might think that the questions are a little too personal, but your Dutch colleague will find his questions perfectly normal. Feel free to interview your colleague back by the way. Go ahead, ask him anything, except don’t ask him how much he earns — that’s a total no-no.

3. Bad customer service

Customer Service in the Netherlands - Independent Expat Finance

I don’t want to discourage you from moving to the Netherlands, but the one thing expats in the Netherlands complain about is bad customer service. If you’re used to being treated like royalty by customer service in your country, you’re in for a rude awakening.

 

Expats often feel as if they are treated like a number. You just have to realize that in the Netherlands, everybody has the same rights and duties. Expats are not an exception. Equality in the Netherlands is very important so whether you’re a cleaner or a CEO does not matter how you are treated at places like city hall, the bank, the supermarket, or your phone provider. Also, showing up somewhere doesn’t mean you will be helped. Because when it’s time to go for the customer service agent, it’s time to go. People can come across as uninterested and unwilling to look further than your question and going the extra mile.

4. Liberalism

The Netherlands is a very liberal place. Besides marijuana and prostitution being (semi)legalized, abortion is legal until 24 weeks, and euthanasia is also legal under very strict law. Also, same-sex marriage is legal and being open about one’s sexuality is something normal in general.

 

But don’t think that the Dutch are lawless. Although they complain a lot about the many rules in society, they do make sure to follow the rules to a T. There’s also weird schizophrenia in the general culture where they feel like everybody should be themselves and anything should be possible but at the same time believe that you should just act normal. What’s normal? Not standing out too much and living by the (unwritten) rules.

5. Happiest place on earth

Tulips in the Netherlands - Independent Expat Finance

And you thought Disneyland is the happiest place on earth. Turns out, the Netherlands is one of the happiest places on earth. What better reason for moving to the Netherlands do you need? Surveys have consistently shown that the Dutch rate their lives in the top 10 of the happiest people on earth (we’re currently at number 6).

 

It might have something to do with the working hours. Dutch people value their spare time a lot. We generally don’t do overtime, especially not unpaid overtime. We love hanging with our family and friends. Although the Dutch, in general, don’t have really close-knit ties with their extended family, they do value their close family a lot. Parents play a big role in their kids’ lives with moms often working part-time to be with their kids and dad’s having a ‘papa-dag’ (daddy-day) once a week.

 

The Dutch men and women are emancipated. The sexes are perceived as being equal although the traditional roles haven’t been rearranged in most families yet. Men value taking care of their kids just as much as women do though.

Wait, there’s more!

There are so many more things that can be said about the Dutch but in a list of five, we can’t include everything. These are things that didn’t make the list but might be interesting to know as well:

  • Almost everyone speaks English. In fact, the Dutch are the best non-English speakers in the world according to this study.
  • Guns are forbidden.
  • Despite their openness, it’s hard to make Dutch friends.
  • Credit cards aren’t widely used.
  • You can drink the tap water.
  • The houses are tiny.
  • There’s universal healthcare insurance.
  • The Dutch are very straight forward almost to the point they’re being perceived as rude. If they have an opinion, they will tell you about it.
  • The Dutch don’t like drama. They are very down to earth people.
  • Dutch don’t like ‘fakeness’– they might consider you being overly nice.
  • The Netherlands houses some magnificent artwork from their great Dutch painters.

Still planning on moving to the Netherlands?

If you’re moving to the Netherlands, you’re probably going to have a great time! Sure, you will need some time to adjust to the customs and ways of the Dutch, but that’s normal for every country. Don’t be afraid to offend people because we aren’t easily offended.

 

Welcome to the happiest place on earth!

 

In need of information about the move to the Netherlands, expat mortgages and / or expat insurances? We are happy to help. Get in touch and fill in the form below!







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

What expats need to know about personal finances when moving to the Netherlands

So, you’re moving to the Netherlands to work as an expat and you need to take care of a million things before you go. If you have a relocator, things will probably go smoothly. If you’re taking care of everything yourself, or if you want to keep a little bit of control about where and with what you end up, you need to find out as much as you can.

 

One extremely important thing you need to take care of when you’re moving to the Netherlands is your personal finances. Personal finance is a very broad term. It usually includes insurances, mortgages, banking, investments, and personal loans. Every part of your personal finances is subject to different rules and regulations. Those rules can be very confusing even if you aren’t also dealing with a different language.

 

Do you find your personal finances to be confusing in your own language? If you do, then you’ll definitely feel lost taking care of it in a foreign language. Have you ever tried to Google translate Dutch websites? It’s horrible! But don’t worry, we’re here to help. So, today, we’re going to teach you the basics about personal finances for expats in the Netherlands.

Your basic personal finance needs when you’re moving to the Netherlands

1.Housing

Most expats, when they’re moving to the Netherlands, will rent an apartment or a house to begin with. When you rent, it means you can be flexible. If you decide not to stay in the Netherlands, you can move out of the house or apartment with a month’s notice. Also, not having to take care of house maintenance is a big plus – at least in our book!

 

Renting is expensive in cities like Amsterdam, Amstelveen, The Hague, Utrecht, and Groningen. Expats can’t rent social housing as the maximum yearly income for social housing in 2017 is €36.165,00. So, expats have to rent in the ‘vrije sector’. Vrije sector housing starts at €710,68 per month but rents exceeding €2000,00 isn’t at all uncommon in the bigger cities where expats usually end up living.

 

Many expats start to consider buying a house at some point. With the current interest rates, buying a house can indeed be a better option than renting. Not only are the interest rates very low right now, the Dutch tax system also gives homeowners a big advantage by allowing you to deduct the interest you pay on your mortgage from your taxable income. That means your final taxes will be calculated on a lower income than your actual income.

 

If you want to buy a house in the Netherlands, it’s a good idea to explore your mortgage possibilities upfront. Given the speed at which houses are sold currently, you have to know exactly what you can spend. You don’t want to fall in love with a home, only to find out you won’t be able to finance it, right? Or, maybe worse, lose your chance because another buyer has figured out his mortgage already while you haven’t even started the process of getting yours.

2. Bank Account

The first thing you’ll need if you want to be able to receive your salary is a bank account. Some banks require a social security number to open an account. Your Dutch social security number is sent to you once you’ve registered as an expat in the Netherlands.

 

The biggest banks in the Netherlands are ABN AMRO, ING Bank, and Rabobank. In recent years, a lot of smaller banks have also entered the Dutch banking scene. Bank licenses aren’t handed out easily. Aspiring banks need to prove to The Dutch Bank (DNB) that they have sufficient funds and that their board of directors is capable of leading the bank. The DNB recommends checking to make sure the bank you’re planning to do business with has a license in their register. In the register, you can see the licenses each of the banks have for specific products.

 

It can be hard to make a choice between banks, especially since most of these Dutch banks don’t have English websites and they don’t offer English support. Yet, when you want to open a bank account, you do need to do it online because local bank offices are becoming close to extinct in the Netherlands.

3. Health Insurance

By law, the Netherlands requires anyone residing here to have health insurance. The government decides what’s in your basic coverage. Additional coverage, however, is different with every healthcare provider. Common things included are dental care, alternative medicine, and physiotherapy.

 

Some things in your basic coverage are automatically covered by your insurer. Other things will only be covered when you exceed a certain amount that you have to pay for yourself first. The amount you have to pay for first is called ‘eigen bijdrage’. You can choose the amount you want your ‘eigen bijdrage’ to be. The higher your ‘eigen bijdrage’, the lower your monthly fee is. And, the lower your ‘eigen bijdrage’, the higher your monthly fee will be.

 

Some very large companies have a collectivity discount with a health insurer and they offer this as a benefit to their employees. This means they agree with a particular health insurer that everyone who signs up for insurance with them gets up to 10% discount on their basic health insurance coverage.

Independent Expat Finance can help you find financial peace of mind

So, these are the basic financial things you need to know and take care of first when you’re moving to the Netherlands. If all of this information is making you dizzy and you’re still confused, we get it. It’s totally normal to feel that way. If you want to find out more about the ins and outs of Dutch finances, you can always send us an email or leave a comment below.

 

We work as a financial intermediary for expats in the Netherlands. We are independent and can help you by giving unbiased advice about the financial options available to you in the Netherlands. If you’d like to explore your options even before you move, we can set up a Skype call. Read more about expat insurances and expat mortgages here!

 

Or, if you’ve already moved to the Netherlands, we can set up a meeting in our office. Give us a call at +31 (0)23-3030110 or send us an email at info@inexpatfin.nl and we’ll set up a free, non-binding appointment.







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.

My company is moving to the Netherlands after Brexit, should I come along?

So, Brexit happened. How about that, right? Since the March 2019, we see companies planning their move out of the United Kingdom to the European Union. Different companies have different reasons to move. A few of those reasons are:

 

1. Gaming companies (and tech companies in general) need a big talent pool to find programmers to develop their games. Before Brexit, people could freely  move from all over the EU to work in the UK. That might become harder after Brexit.

 

2. Banks are anticipating a move because they need the regulatory framework  the European Union provides.

 

3. Companies that have manufacturing factories prefer to be in the EU where  the borders are open and they can freely ship their products.

 

4. It’s important for companies to have a European presence since the European market is much bigger than the UK market.

 

You might be thinking: how bad is it really with all of those companies that are supposedly moving to Europe? Well, we’re not sure. But it might be bad.

“It’s very hard to tell how many people will actually move. However, it’s clear that EU operations will need to be proper functioning entities and not just letterboxes.”

If your company is one of those companies moving, you might have a hard time competing with the other 99.999 people that will be looking for a new job in Britain soon.

Luckily, you still have a choice. It makes sense for companies to take their employees with them when they move since it takes a lot of effort to train new people for the jobs that are moving. If your company is moving, they might ask you to come along. So, what is your answer? Will you move across the pond?

memebreakfast

Benefits of moving to Europe after Brexit

 

We can imagine that you wouldn’t want to make such a life-altering decision without thinking it through. And, we can also imagine that you feel a bit taken back by the entire situation. After all, you’ve worked so hard to get to where you are right now career-wise. Still, it’s not easy to choose between your career and your home.

 

Or, are you excited about this opportunity for adventure? Maybe, you think that moving to Europe with your company will even further advance your career. It will definitely show your employer how much you’re invested in the company. It might even create a situation where your company owes you one. Isn’t that a great position to be in?

 

Actually, there are plenty of good reasons to move with your company. Granted, you won’t be able to see your family as much. That’s a bummer. Also, there will possibly be some language barriers to overcome. Even worse… you’d have to learn to drive on the other side of the road. But think about how much richer it will make you in life experience. Meeting new people. Getting to explore a new cuisine. Learning about a different country and culture. Getting to know yourself really well. Who wouldn’t want that?

 

Don’t care about getting richer in life experience? Moving to Europe might also bring you financial benefits. Since we can only speak for moving to the Netherlands after Brexit, that’s what we’ll do.

 

In the Netherlands, expats are eligible for the 30% tax ruling. That means that you’re not paying any taxes on the first 30% of your annual salary. If you buy a house in the Netherlands, you get even more tax benefits. The interest you pay on your mortgage is deducted from your taxes. Even when you rent a house, you still save money since the cost of living in Amsterdam is 18% cheaper than in London.

 

Think about what you could do with all that extra money you’re saving because of the 30% ruling and the cheaper living costs in the Netherlands… Do you buy that Tesla model S you’ve been dreaming about? Or, do you go on that once in a lifetime luxurious holiday to the Maldives – every year?

What will you need to do to move to Europe after Brexit?

 

Under the European Union’s right of free movement, it was very easy for Brits to work anywhere in the European Union. EU citizens don’t need a work permit or a residence permit to be able to work and live anywhere in the EU. After Brexit, these rules will most probably change.

 

Now, there are also 3 million EU nationals living in the UK. If you’re one of them, you’ll still fall under the same EU rule of free movement. You can move back to Europe with your company without needing a permit.

 

We can’t say anything for sure at this point about what the requirements will be to move to Europe after Brexit. That will depend on the negotiations between the European Union and the United Kingdom. What we can say is that, if you move to Europe before the 2019 Brexit deadline, you’ll probably be allowed to stay after. That’s because there are agreements within the European Union that dictate that withdrawal of a treaty affects the future only.

 

Don’t let it bring you down

tulipslove

As if kind of being forced to move to another country by forces that are greater than you isn’t enough, you also have to take care of so many things for your move to go well. Most companies that hire expats, help with their relocation. Hopefully, your company will too so that you’ll have one thing less to stress about. There are so many other things however that you need to take care of when you move to another country. You need a bank account, you need housing, you need health insurance and other insurances. And while we can’t help you find a school for your kids or help you adjust to driving on the wrong – kidding, the right – side of the road. We can help you by relieving you from taking care of your personal finances. We’re just saying, don’t write off moving with your company because the thought of everything you need to arrange makes you anxious. We’ve got your back. Because, unlike with ex-spouses of many failed marriages, we still love you…

 

Is your company moving to the Netherlands after Brexit and you already know you’re going with them? Check out our blog posts on What to expect when you’re moving to the Netherlands and What expats need to know about personal finances in the Netherlands.

 

Need us to help you moving to the Netherlands after Brexit? Check out all information about expat mortgages and expat insurances.







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What insurances do expats in the Netherlands need?

The point of covering risks with insurance is to not fall into a situation where you need to pay extensive bills if something unexpected happens. Most people don’t have a gigantic savings account which they can use when – God forbid – they had a fire in their house or to pay for the funeral of a loved one.

 

The hardest thing about getting insured in the Netherlands is to find out which insurance you need. To actually get insured is easy, it’s all done online and there are a gazillion insurers that can help you. A quick Google search can get you a long way but we can imagine that choosing the insurer that’s right for you can seem like a daunting task. How do you find out which insurer is reliable and which exact insurances you need?

 

There are plenty of intermediary websites where you can fill in your details and get a list of insurances that are best suited for you. These websites only tell you about the particular insurance you specified but don’t help you find out which insurances you need for your particular situation.

Mandatory insurances

 

There are two types of insurance that are mandatory and one type of insurance that’s semi-mandatory in the Netherlands. These are the healthcare insurance, the car insurance, and the home insurance.

Healthcare insurance

Everyone residing in the Netherlands is obligated by law to take out healthcare insurance. You have to get your healthcare insurance within 4 months of receiving your residence permit. If you’re a resident of the EU, EEA or Switzerland you need to be insured 4 months after registering at your city hall. If you have kids, they will also need to get healthcare insurance. You can add them to your own healthcare insurance, free of charge, until their 18th birthday. If you have a baby while living in the Netherlands, it needs healthcare insurance within 4 months after birth. If you fail to insure for healthcare within 4 months, you’ll be fined and registered with a random insurer by the authorities. They will have your monthly insurance fee deducted from your salary.

 

Healthcare insurance in the Netherlands is divided into a mandatory basic coverage insurance and an optional additional coverage insurance. Insurers aren’t allowed to ever reject you for basic coverage insurance.

 

You pay for healthcare insurance through a monthly fee and the ‘eigen bijdrage’. The ‘eigen bijdrage’ is a set annual amount. Some medical expenses in your basic coverage are automatically covered by your insurer. Other medical expenses are only covered by your insurer once you exceed the ‘eigen bijdrage’.

 

You can change your healthcare insurance once a year for the following year until the 31st of December.

Car Insurance

If you own a car, you must at least take out third party liability insurance for it. This will ensure that the expenses that you’re legally accountable for are covered. This level of car insurance will only cover the damage that you make to the other involved parties.

 

The second level of car insurance is the third party liability plus limited hull insurance. This insurance gives you basic coverage and in certain cases also covers damage made to your own car.

 

With the all risk coverage, you are insured for almost anything that happens to your car.

 

So, if you get into a car accident and you aren’t legally accountable, the insurer of the accountable party pays. Your insurer pays for the other party if you’re the accountable party. Your own expenses are covered only if you have all risk coverage and in some cases also with the limited hull coverage.

Home Insurance

This insurance isn’t compulsory by law, it’s an insurance that’s required by most mortgage providers. It will cover you when for example a fire or storm damages your home.

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Popular Insurances

Liability insurance

If you accidentally bump into a parked car while riding your bike, the damage to that car can be covered by a liability insurance. This insurance is the reason that a falling out over damaged things won’t happen often between the Dutch.

Legal insurance

Suing in the Netherlands isn’t a common thing at all so you don’t have to get legal insurance for that reason – We see you, American readers, sighing in relief… – Don’t forgo on the legal insurance however as there are other cases in which you could need legal insurance. One of our clients bought a house which he could move into two months after the deed on his rental house expired. He asked his landlord if he could stay two more months in his rental place. The landlord refused because he couldn’t wait for our client to move out. In the current housing market, the landlord can easily ask for a much higher rent than our client was paying. In such cases, it’s nice to have legal insurance to help you.

Travel insurance

Travel insurance can help you when your luggage gets stolen while traveling abroad. It can also help you in case you have an accident or are sick to get you back to the Netherlands. You can choose to include cancellation insurance in your travel insurance. This ensures you that you can cancel or reschedule your trip when something unexpected happens. Without losing your money.

Repatriation insurance

Nobody wants to think about it but if you were to die while living in the Netherlands, where would you want to have your memorial service? With this insurance, your body is repatriated to your home country.

travel insurance

Need help to decide which insurance you need?

 

The Dutch sure love their insurances. A problem Dutch people have is that they are over-insured as opposed to under-insured. In reality, these are two similar problems with very real consequences. Either way, you’re losing money. Your goal should be to have just the right amount of insurances. Learn everything about expat insurances in the Netherlands.

 

We know that you most likely don’t want to think about all the horrible stuff that can happen in life. So depressing, right? But sometimes, you need to take charge now to be safe in the future. We can help you get the right insurances in one appointment of an hour. That beats surfing the internet for days, trying to find out what you need and how to get it, right?

 

Contact us at +31 (0)23-3030110 or send us an email at info@inexpatfin.nl and we’ll set up a free, non-binding appointment. We can also help you switch to another health insurer.







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What you need to know about moving to the Netherlands as an expat (even if you already have a relocator)

Getting settled into a new country can be a stressful experience. Luckily there are relocators who can help you make the experience less of a confusing process. Most expats who are moving to the Netherlands will work for a large company. Those companies usually set you up with a relocator who helps all expats of that company with moving to the Netherlands.

 

Some expats, however, will work for a smaller company and will have to find a relocator on their own. The same goes for all the expat entrepreneurs out there.

 

Whatever your situation, it’s good to know what to expect of your move to the Netherlands. That way you’ll feel more in control. Which can help you reduce your stress even more.

So, without further ado, these are the steps you need to take to become an expat in the Netherlands:

VISA and Residence Permit

 

If you’re not a citizen of the European Union, your very first step to moving to the Netherlands is to apply for a VISA. When your VISA request is accepted, you can apply for a residence permit. To apply for a residence permit, the company you’re going to work for needs to be registered as a recognized sponsor at the IND. For your application to be accepted, your salary needs to be sufficient, independent and long-term. The cost to apply for a residence permit is currently €938 and is usually paid for by your employer. To find more information and to apply for the permit, visit the website of the IND.

Get Registered

 

After getting your residence permit, you’re good to go! As soon as you arrive in the Netherlands, you’ll need to register yourself as a resident. Every city has a different process so you should find out how to register in the city where you’re going to live. Some cities require you to register at city hall, others require you to register at a special expat center. You do need a Dutch address to be able to register in the Netherlands. If you don’t have an address yet, you need to register as soon as you sign a rental lease. Or, if the city where you’re going to live allows it, you can register at the business address of your employer.

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The Social Security Number (BSN)

 

 

Once you’re registered as a resident, a social security number (BSN) will automatically be assigned to you. Without your BSN, you won’t be able to work in the Netherlands.  Plus you need your BSN to do a number of other things such as to open a Dutch bank account, to apply for health insurance and to apply for the 30% ruling.

 

Without registering in the Netherlands and without your BSN, you won’t be able to start your life as an expat in the Netherlands. You’ll kind of remain a tourist. If you’re still not registered after 4 months, you become an illegal alien in the Netherlands. If you’ve been working all this time, your employer is in violation of the law and will have to pay a large fine to the Dutch government.

 

Keep in mind that, if your family is coming to the Netherlands with you, they each need their own BSN. Even the littlest one. Kids, for example, need a BSN to be able to go to school.

Health Insurance

 

You’re required to take out health insurance within 4 months after your arrival in the Netherlands. There are plenty of health insurance providers in the Netherlands. To find out more about health insurance, read our blogs https://www.inexpatfin.nl/news/31/what-expats-need-to-know-about-personal-finances-when-moving-to-the-netherlands”>here and here.

Driver’s License

 

Upon arriving in the Netherlands, find out how long you’re allowed to drive with the driver’s license from your country of origin. Driver’s licenses issued in some countries are only valid for 6 months after your arrival in the Netherlands. It’s probably a good idea to find out if and when you need to convert your foreign driver’s license to a Dutch driver’s license. You can find more information here.

The role of your relocator

 

Now that the most important things you need to do once you arrive in the Netherlands are clear, you might wonder what role your relocator has in all of this.

 

Well, the relocator guides you through every step of the way. He’s also there to translate anything for you. Your relocator can help you to apply for your residence permit. He can help with shipping your stuff from your current country of residence to the Netherlands. He can find houses for you and make appointments so you can go see those houses as soon as you arrive in the Netherlands. Once you arrive to the Netherlands, your relocator can pick you up from the airport and go to the previously arranged house viewings with you. After you’ve signed your rental lease, your relocator will go with you to city hall to register you. He will help you open a bank account, apply for the 30% ruling, and direct you in how to convert your driver’s license. The relocator can also help you find a general practitioner and a dentist. Furthermore, he can help you find a good school for your kids and just, in general, provide you with all the information that you need about the Netherlands.

 

Some relocators have preferred companies they work with to take care of certain things for you. However, you’re still the boss of your own relocation. So should you want to use another vendor, perhaps a certain financial intermediary to help you open your bank account or to take out your health insurance with, you’re free to do so! You just have to tell your relocator to contact us at +31 (0)23-3030110 or info@inexpatfin.nl, or you can contact us yourself. Good luck with moving and see you soon in the land of the tulips!

tulipslove






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How do taxes for expatriate homeowners work in the Netherlands?

When you buy a home in the Netherlands, you’ll soon be confronted with taxes concerning that new house. Aside from the taxes involved with buying a house, which are usually one-off taxes, there are also a bunch of recurring taxes. Most of the taxes that concern your home are collected by the municipality you live in. A few other taxes are collected by the tax authorities, and a government body called the Waterschap collects one particular kind of tax.

WOZ-Waarde

Almost all of the taxes you have to pay for your home are calculated based on the WOZ-Waarde of your house. The WOZ value is calculated every year by your municipality and doesn’t necessarily have to be the same value an appraiser would give your home.

Tax authorities

belastingdienst

You might have already heard about the possibility to deduct your mortgage interest with the hypotheekrenteaftrek. But unfortunately, when it comes to owning a home, you don’t just get money back from the tax authorities. There are also some taxes that you need to pay. These are the overdrachtsbelasting and the eigenwoningforfait.

Overdrachtsbelasting

When you buy an existing house as opposed to a newly build house, you need to pay overdrachtsbelasting. This is a one-off fee and is 2% of the price of your house. When you buy your home, the notary that also passes the contract handles the declaration of the overdrachtsbelasting. The notary will also pay for the overdrachtsbelasting in your name.

The eigenwoningforfait is a recurring tax collected by the tax authorities from homeowners. Your house is seen as income in kind by the tax authorities. Instead of paying a certain amount of tax for your home, the eigenwoningforfait is added up to your income and you pay for it through your regular income tax filing. It’s calculated based on a percentage of the WOZ-Waarde of your house, and the higher the value of your home, the higher the rate you have to pay.

 

The eigenwoningforfait is paid through your income taxes every year. Say your house’s WOZ value is €500.000 that means that the eigenwoningforfait is 0,75% of €500.000 is €3750. That amount is added up to the rest of your income. On the other side, however, your hypotheekrenteaftrek is deducted from your income. So, the amount of income tax you’re paying is calculated like this:

yearly salary – hypotheekrenteaftrek + eigenwoningforfait = taxable income

Municipality

Besides the taxes you’re paying to the tax authorities, there are also other taxes that are paid directly to your district. There are the onroerendezaakbelasting, rioolheffing, reinigings- and afvalstoffenheffing.

Onroerendezaakbelasting (OZB)

Your municipality uses this tax for miscellaneous things. The person that owns a house on the 1st of January is paying for the OZB. Even if you’re moving on the 2nd of January, you’re paying the tax for the entire year. The amount of tax you need to pay is a percentage of the WOZ-Waarde. Every municipality, however, decides what the percentage is that you’re paying. To give you an idea of the percentages of the OZB, the lowest rate in 2018 is 0,04139% of the WOZ-Waarde. Surprisingly, it’s the city of Amsterdam that has the lowest OZB percentage in the Netherlands. The highest rate is collected in Nijmegen, and that rate is 0,2612%.

Rioolheffing

You pay this tax for the right to use the sewer. With the charge, your municipality makes sure that the water you use in your home is drained. The city also uses the charge to drain and save rainwater, to keep groundwater in check, and to maintain the sewer system. Again, every municipality decides on the tax amount, but they aren’t allowed to tax their citizens more than what they need to finance the tasks as mentioned earlier.

Reinigings- en afvalstoffenheffing

By paying this tax, your municipality can collect and clean up your garbage disposal. Again, the city decides on the amount you’re paying for this tax, but they’re not allowed to ask for more than they need to perform their task.

tax

Waterschap

The Dutch are known to be masters of water. That’s why they are asked to give their expertise on water all over the world. Historically, the Dutch had to learn to manage the water surrounding the Netherlands. To handle that water an individual government body called the Waterschap was created.

 

The Waterschap is responsible for managing the water in a designated area. It’s their duty to make sure you receive clean water in your home and to protect you from the water surrounding the Netherlands. To fund the responsibilities of the Waterschap, everyone has to pay waterschapsbelasting.

 

Taxes for the waterschap responsible for your municipality are paid directly to them. They send you an invoice for the charge once a year, or you can agree with them to pay in installments. The amount of the tax depends on where you live and can be anywhere between €150 and €300 a year. The waterschap is a non-profit organization, so they too won’t ask for more tax than they need.

 

So, those are all the taxes involved in owning a house. Some of which by the way, are also imposed on renters.

 

If you’re thinking about buying a house in the Netherlands, why not find out how much you can take out in a mortgage? That way, you can start looking at homes that you know are a right fit for you financially speaking. Contact us at +31 (0)23-3030110 or info@inexpatfin.nl to set up a free and non-binding appointment where we can discuss your options.







Call me backSend me an e-mail

We can advise you in

following financial products

Mortages

On a mission to buy a house in the Netherlands? Let us help you get
the keys to your new home!

Insurances

Reduce financial risks and get the support that you need. Getting the right insurance now may save you a lot of money in the future.