What happens to my mortgage when I sell my house and do I need to pay any penalties or taxes?

As an expat living abroad there is a big chance you won’t live in The Netherlands forever. We often get questions during a mortgage intake from clients what happens to the mortgage when you end up selling your Dutch home. Do you have to pay a penalty to cancel the mortgage or do you need to pay taxes over the capital gains?

Is there a penalty when you cancel your mortgage prematurely? 


No, when you sell your home and you cancel the mortgage you never have to pay a penalty in the Netherlands. Even if it is just after a few years or you are in the middle of an interest fixed term. A penalty is only due if you want to cancel your mortgage while you are in an interest fixed term and want to renegotiate your interest of change over to another mortgage provider for a better deal.

Do you need to pay taxes over the capital you gain?


So what happens if you end up with capital after your home is sold? In most cases you will end up with capital because either (a) you have been paying off your mortgage and or (b) your property is now worth more than you bought it for. Whatever the reason, over the money you end with on your bank account you do not have to pay any immediate capital gains tax or income tax.


Eventually you might need to pay wealth tax, currently this is applicable if you have more than € 50.000 in assets (Box 3: savings or investments) as a single person or with a partner € 100.000 between the two of you. How much wealth tax you have to pay to the Dutch tax authority depends on the value of your assets as of Jan 1st in the coming year. Don’t forget, your main residence that you live in in The Netherlands is not considered an asset in Box 3 but in Box 1 generally.

One rule worth noting: the “bijeenregeling”


There is one rule worth noting that is called the “bijleenregeling”. This stipulates that if you sell your house and end up with excess value and then buy a new home within 3 years, you will need to put the excess value towards the new home in order to get the full tax rebate again. You are however not obliged to and sometimes we see clients that rather prefer to leave a nice buffer on the savings account. With current low interest rates and tax rebates, this is not too much of a disadvantage and can be worth considering.

Book your free intake mortgage consult and explore your options with Independent Expat Finance


We would be happy to discuss your options if you’re planning on selling your home. Contact us to schedule a first intake which is always free of charge. For more information about mortgages in the Netherlands, click here! 

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