Did you know that there are advantages to being under the age of 35 and buying a house in the Netherlands? Financial advisor José de Boer from De Boer Financial Consultants is here to give you the low-down.
You might think that buying a home in the Netherlands is out of your league, given rising house prices, current interest rates and the lack of supply. But the Dutch government is well aware of the difficulties youngsters face getting their foot on the housing ladder, so it has put several measures in place to help you on your way.
First-time house buyer
Firstly, if you are under the age of 35 and it is your first home, you won't have to pay property transfer tax, which is currently 2% for people who are 35 or older. The tax break applies if you buy a property worth no more than €510.000 - so that gives you plenty of choice for a starter home, even in the bigger Dutch cities.
Tax-free gifts
Secondly, you can also accept a tax-free gift from your parents - if the bank of your parents has the financial resources available, of course.
In addition, the Dutch tax authorities (Belastingdienst) will not tax funds coming legally into the country from abroad, so if your parents or grandparents are in another country, they can send you as much as they like to help you buy a home without you being required to report it to the tax office.
Parents who are in the Netherlands can give their child €6.633 every year without their offspring having to pay taxes on it, and that also makes a handy contribution towards a mortgage. Your grandparents, your aunts and even your brothers and sisters can also help out to the tune of €2.658 tax-free every year.
If your parents do live here, you can also benefit from a one-off donation of €31.813 tax-free. Please note however that your parents can't give you that, plus the €6.633 in the same tax year and that it is a one-off, so make sure you use it well!
New developments
Check out new housing developments in your area too. Some include homes that have been set aside, especially for first-time buyers. Some developers also offer housing at a discount which requires the buyer to pay them a proportion of the profits when the property is sold - making it a more affordable option.
Several local councils have also introduced special schemes to help people in key jobs, such as teachers and healthcare workers, get their foot on the ladder by giving them priority in some new housing projects.
Get lucky
The government is also launching a special fund to help first-time buyers, which will give them a discount of up to €70.000 when buying a new home. Once it is up and running, you will be able to call on the fund for help, as long as the property is a new one and does not cost more than €390,000. The terms have not yet been finalised but more should be known about this fund in October 2024.
And as a last resort, talk to your landlord. If you are living in a small rental flat, you can always ask if they would like to sell. New rules expanding rent controls to cover more properties have made some landlords consider selling because they might not be able to charge as much rent again. There is no harm in trying, and who knows, you might be lucky!
Do you have any questions about being a young first-time buyer or about Dutch mortgages in general? De Boer Financial Consultants helps expats in the Netherlands navigate the housing market and find the right mortgage plan for them. Get in touch with their team via the contact form below or call +31 70 511 87 88.