Published on and written by Cyril Jarnias
Buying a home in the Netherlands may seem simple on paper: no restrictions for foreigners, a highly secure land registry, and a neutral notary overseeing the transaction. In practice, the market is tight, the law is very specific, hidden costs are numerous, and legal pitfalls are very real. Many buyers—especially international ones—make the same mistakes, sometimes very costly ones.
Buying real estate in the Netherlands requires knowledge of the specific pitfalls of the legal, tax, and practical framework in force. This article details the main mistakes to avoid for a successful transaction.
Misunderstanding the General Framework: An Accessible but Demanding Market
The first misconception is to believe that, because foreigners can buy freely, the process will be similar to that of their home country. However, the Dutch system has its own rules.
In the Netherlands, buying a home, whether by a non-resident, a foreign company, or a Dutch citizen, grants no right of residence, visa, or ‘Golden Visa’. It is a common mistake among international buyers to believe that property ownership provides a migration advantage.
The legal system is based on the Civil Code, with a key principle: only the registration of the transfer deed in the official land register, the Kadaster, makes you the legal owner. Signing the purchase agreement (koopovereenkomst) is not sufficient. The civil law notary (notaris), a neutral public officer, drafts and signs the deed, handles verifications, and registers it.
The notary is neither the seller’s nor the buyer’s lawyer. Their role is to guarantee the legality of the transaction and the security of funds for both parties. They do not defend your individual interests. Not using independent advice (lawyer, legal expert, buyer’s agent) alongside the notary is a common source of vulnerability, especially for buyers who do not speak Dutch.
Another peculiarity: the market is extremely competitive, especially in spring and summer, and in major cities. Properties very often sell above the asking price, through bidding wars or “silent auctions” with sealed offers. Overbids of 5 to 12% above the asking price are common, and up to 20% on some entry-level segments in Amsterdam or Haarlem. Underestimating this competition, or thinking you can negotiate “the old-fashioned way,” leads either to losing properties or overpaying without a real strategy.
Underestimating Hidden Costs: The Kosten Koper Trap
Many buyers only focus on the price listed on portals (Funda, Jaap, etc.) and forget that in the Netherlands, this price is almost always listed “kosten koper” (k.k.), meaning excluding purchase costs. These additional costs generally represent between 3 and 6.5% of the property price, often around 4 to 6%. For an investor, the bill can rise to 10 to 12% due to a higher transfer tax.
Since 2018, a mortgage can finance a maximum of 100% of the purchase price or the appraised value of a property.
A detailed overview helps to get oriented.
Table 1 – Order of Magnitude of Main Purchase Costs (Kosten Koper)
| Cost Item | Indicative Range (Residential) | Tax Deductible? |
|---|---|---|
| Transfer Tax (primary residence) | 2% of purchase price | No |
| Transfer Tax (investment, 2026) | 8% of purchase price | No |
| Notary – Transfer Deed | ~ €700 – €2,000 (often €900 – €1,500) | No |
| Notary – Mortgage Deed | Included / similar to transfer | Yes |
| Land Registry (Kadaster) per deed | ~ €77 – €250 | Yes for mortgage deed |
| Sworn Interpreter (if needed) | ~ €250 – €550 | Often yes (financing related cost) |
| Appraiser (taxatierapport) | ~ €250 – €1,000 (often €500 – €950) | Yes |
| Technical Inspection (bouwkundige keuring) | ~ €200 – €750 (often €350 – €600) | Yes, if required by the bank |
| Mortgage Broker / Financial Advisor | ~ €1,500 – €4,500 (typical €2,000 – €3,000) | Yes |
| Buyer’s Agent (aankoopmakelaar) | Flat fee €1,500 – €5,000 or 1–2% of price | No |
| Bank Guarantee for 10% Deposit | ~ 1% of guaranteed amount | No |
| NHG Guarantee (National Mortgage Guarantee) | 0.6% of loan amount | Yes |
Forgetting to budget for these amounts leads to two cascading errors: overestimating what you can buy and being stuck at the time of signing due to a lack of cash.
An important nuance: if the appraised value is higher than the purchase price, it is sometimes possible to finance a small part of these costs in the loan. Similarly, a gain from a previous sale can help cover the costs. But counting on that as a rule remains risky.
Mismanaging the Transfer Tax and Exemption Regimes
The transfer tax (overdrachtsbelasting) is another minefield. It varies according to the intended use of the property.
Table 2 – Main Transfer Tax Rates
| Type of Purchase | Transfer Tax Rate (2026 Situation) |
|---|---|
| Primary residence occupied by the buyer | 2% |
| First-time purchase (ages 18-35, below ceiling) | 0% (exemption, one-time only) |
| Non-occupied residence (investment, second home) | 8% (reduced from 10.4%) |
| Commercial buildings, land, other | 10.4% (unless special provisions apply) |
Many first-time buyers are unaware of the exemption for those aged 18–35. In 2026, it applies up to a price of €555,000, under conditions: buying to live in yourself, not having used this right before, and declaring this intention before the notary. If you buy jointly and one person is over 35, only their share is taxed at 2%, while the younger person’s share can be exempt.
Some real estate transactions benefit from specific tax relief, such as resale within six months or purchase of new property under the VAT regime. It is crucial to check these particular situations to avoid paying too much tax or missing an opportunity for legal optimization.
Neglecting the Type of Property Right: Freehold or Erfpacht?
A typical mistake by foreigners is to think that every purchase automatically includes the land. However, in many cities, especially Amsterdam, the ground remains owned by the municipality, and you only purchase a leasehold right (erfpacht) for a very long term, paying an annual ground rent (canon).
Not analyzing the erfpacht contract in detail is a major source of nasty surprises:
Managing a property under erfpacht can present several financial and administrative challenges. This includes a sometimes opaque and periodic increase in the ground rent (the canon), the potential transition to a perpetual system requiring often costly buyout, as well as an impact on the property’s resale value and access to certain bank loans. Additionally, specific, sometimes restrictive, conditions generally apply for renovations or extensions of the property.
Ignoring that your house is on municipal land, or misunderstanding the leasehold clauses, can nullify a profitability calculation and complicate future rental. The buyer must therefore systematically request and have the erfpacht contract translated, and have the scenarios of canon increases over several decades checked.
Buying an Apartment Without Scrutinizing the VvE: The Costly Mistake That Comes Back to Bite You
Another classic: falling in love with an apartment without looking into the Vereniging van Eigenaars (VvE), the homeowners’ association. In the Netherlands, buying an apartment means buying an apartment right (appartementsrecht), i.e., a share of the entire building and mandatory membership in the VvE.
Not analyzing the VvE is like buying blind the financial health and atmosphere of a mini-“micro-state” of which you will be a member for life.
Several documents must be systematically requested and read:
Before acquiring a unit in a condo, it is crucial to examine the following documents for a full understanding of your rights, obligations, and the building’s financial health.
Defines your rights, obligations, and your share in common charges (splitsingsakte & splitsingsreglement).
Details the community living rules (short-term rentals, pets, renovations, etc.).
Reveal potential conflicts, planned works, or outstanding payments (ALV).
Assess the strength of the common fund and financial management.
Lists major upcoming works (roof, facade, elevator…) and their planned funding.
Table 3 – Signs of a Healthy or Risky VvE
| Observed Element | Possible Interpretation |
|---|---|
| Significant and regular reserve fund | Prudent VvE, lower risk of special assessments |
| Detailed MJOP for 5–10 years | Clear vision of future works |
| Few late payments, few disputes | Relatively stable governance |
| Annual meetings held, clear minutes | Structured management |
| Low reserves, no MJOP, major works planned | Risk of heavy special assessments per unit |
| External management but tight budgets | Additional management fees, but often more professional |
Monthly VvE charges (servicekosten) vary widely. For an apartment around 70 m², they often range from €100 to €300 per month, with an observed average around €160 in 2025. In buildings with an elevator, garden, parking, or high-end amenities, these amounts easily rise to €200–€400 monthly. Not factoring this recurring expense into your budget is a frequent planning mistake.
Ignoring the VvE can lead to discovering after the purchase major constraints like a ban on Airbnb rentals, an expensive facade renovation (e.g., €20,000 per unit) voted by the assembly, or the imminent replacement of the elevator without sufficient financial reserves.
Skipping the Technical Inspection: The False Short-Term Saving
In a tight market, many buyers skip the technical inspection (bouwkundige keuring) to “move fast” or “save €400.” This is arguably one of the riskiest decisions one can make.
A thorough inspection consists of an in-depth visual examination of the property—from the crawl space to the attic—without destruction, but with a professional eye on:
– the structure (foundations, load-bearing walls, floors, roof);
– facades, joinery, staircases;
– installations (water, gas, electricity, heating, ventilation);
– signs of moisture, rot, possible asbestos, leaks, etc.
Only half of Dutch buyers order an inspection before purchasing a home, despite unexpected repairs costing on average several thousand euros.
The issue is not only technical: the report becomes a negotiation tool. If the inspection reveals a roof that needs replacing or electrical problems, you can either request a price reduction, demand that the repairs be done before the sale, or activate a cancellation clause if one was included. Conversely, without a report, it will be much harder to hold the seller liable for defects discovered later, especially in private sales where protection against hidden defects is limited.
Forgetting Essential Clauses in the Purchase Agreement: The Legal Trap
Once your offer is accepted, the buyer signs a koopovereenkomst (purchase agreement). For a consumer buyer, the contract must be in writing to be legally valid, and the law grants a 3-day cooling-off period to withdraw without reason. After this period, the text binds you firmly, unless suspensive conditions (ontbindende voorwaarden) are duly included.
Two dominant mistakes:
1. signing without including a financing condition, to appear more attractive;
2. accepting too short a financing period.
The financing clause allows you to withdraw without penalty if your loan is rejected. You must provide proof of rejection before the agreed deadline (usually 4 to 6 weeks, possibly up to 8). After this deadline without action, the purchase becomes binding, and a penalty of 10% of the price may be applied.
In a very competitive market, some buyers try to stand out by waiving this clause. They are then playing double or quits: if the bank refuses, the bill can be crushing.
We also see agreements without a technical inspection clause, or without a “no risk” clause tying the purchase to the sale of a current home. Omitting these safeguards transfers the vast majority of the risk of financing and structural defects onto you.
Neglecting the Role (and Choice) of the Notary
Because the notary is mandatory and perceived as “the one who handles everything,” many buyers think they also verify all technical and commercial aspects for them. This is not the case.
– The notary must:
– draft notarial deeds,
– advise their clients,
– guarantee the legal security of certain transactions,
– perform preliminary checks,
– archive documents appropriately.
– verify the identity and legal capacity of the parties;
– check with the Kadaster that the seller is indeed the owner and whether there are mortgages or charges;
– ensure that the funds (price, taxes) are correctly deposited into the escrow account;
– draft and have the transfer deed signed, and, if applicable, the mortgage deed;
– register these deeds with the Kadaster.
A notary does not visit the property, conduct a market analysis or technical inspection, and is not tasked with advising on the price’s suitability, the VvE (homeowners’ association), or the erfpacht leasehold. A frequent mistake, especially for non-Dutch speakers, is to choose a notary simply because they are “suggested” by the seller’s real estate agent, without comparing fees or verifying their language skills.
Another underestimated point: if the notary doubts your understanding of Dutch, the presence of a sworn interpreter is legally required during the signing. Some buyers end up with an unexpected interpreter bill or even with documents translated in a rush. It is therefore prudent to clarify the need for interpretation from the offer stage, obtain a detailed quote, and ideally have a written translation of the purchase agreement in advance.
Poorly Anticipating Mortgage Requirements for Foreigners and Non-Residents
Financing is another area where expats often hit a wall. Theoretically, foreigners and non-residents can obtain a loan from Dutch banks. In practice, the conditions are stricter than for residents:
Non-residents face specific conditions: loan-to-value (LTV) ratios are often limited to 60–70%, interest rates are increased by 0.5 to 2 percentage points, and income documentation is stricter, especially for self-employed individuals and income in non-euro currencies. Furthermore, contributions from family gifts from abroad are rarely accepted without thorough proof of the origin of funds.
Many applications fail for purely administrative reasons: missing document, unsigned version, missing translation, wrong format. Banks also apply specific rules regarding the famous 30% ruling (tax advantage for expats): this benefit is generally not included in the calculation of borrowing capacity, even though many newcomers think otherwise.
Another common misconception is to believe in a firm “pre-approval” as in some countries. In the Netherlands, what looks like a pre-qualification is not legally binding: the actual file review begins after signing the purchase agreement. It is therefore common to see rejections arrive late, close to the financing deadline, generating considerable stress.
Dutch real estate expert
Not being accompanied by an experienced mortgage advisor for expat cases is, in this context, a strategic mistake. These intermediaries, who typically charge between €2,000 and €3,000, know the specific criteria of banks, know how to present variable or foreign income, and avoid rejections for purely procedural details.
Forgetting the 10% Deposit Rule and the Bank Guarantee
At the time of signing the purchase agreement, the buyer must in principle pay a deposit of 10% of the purchase price into the notary’s escrow account, within a few days after the end of the cooling-off period. This deposit serves as a guarantee: if the buyer fails to meet their obligations outside the cases covered by the suspensive clauses, the seller can keep it as a penalty.
For a real estate purchase, if the buyer does not immediately have the deposit amount, they can use a bank guarantee, which costs about 1% of the guaranteed amount (e.g., €400 for €400,000). Not budgeting for this expense or paying the deposit late can legally allow the seller to cancel the sale and claim a penalty.
Underestimating Recurring Costs After the Purchase
Focusing on the purchase costs and forgetting the annual charges often leads to tight budgets. The main charges to anticipate are:
Acquiring a property in the Netherlands entails several recurring costs. The municipal property tax (OZB) is calculated on the fiscal value (WOZ) with rates varying by municipality, e.g., around 0.05% in Amsterdam and a higher rate in Groningen. The owner-occupant must also declare a “fictitious rental value” (eigenwoningforfait) as taxable income in Box 1, although mortgage interest is partially deductible. For an apartment, VvE service charges are added. One must also budget for insurance (building and contents), municipal levies (water, waste), and energy costs, which can be significant in poorly insulated homes.
Ignoring these items remains a frequent planning mistake. Many homeowners discover a year later the cumulative impact of OZB, eigenwoningforfait, and VvE on their cash flow, even though these amounts can represent several thousand euros per year.
Getting the Taxation Wrong for Primary Residence and Rental Investment
Confusing the taxation of the primary residence (Box 1) with that of rental properties or secondary homes (Box 3) is another common trap.
For the primary residence:
– mortgage interest is deductible from your taxable income, with a capped deduction rate (around 37.5% for a broad income bracket in 2026);
– a theoretical rental value (eigenwoningforfait), calculated as a percentage of the WOZ value, is added to your income;
– capital gains upon resale of the primary residence are in principle tax-exempt.
For a secondary residence or a rental property:
The property is taxed in Box 3 (wealth) based on a deemed return applied to its net value (WOZ value minus debts). The effective tax rate on this theoretical return is generally between 0.5% and 1.7% of the property’s value. The non-resident owner is required to file a Dutch income tax return as a non-resident taxpayer.
Many investors also neglect the very protective framework for tenants: sometimes regulated rents, regulated increases, the Affordable Rent Act that caps increases, very strict regulation of short-term rentals, and fines that can go up to €87,000 for non-compliance. Thinking you can “switch to Airbnb” without checking the zoning plan and municipal rules, especially in Amsterdam, is a serious mistake.
Ignoring the Zoning Plan (Bestemmingsplan / Omgevingsplan) and Development Projects
Many buyers inquire about the neighborhood school or the nearest tram stop, but never consult the zoning plan (bestemmingsplan or, now, omgevingsplan) of the municipality. Yet this document determines what can be built around you, what activities are permitted, and under what conditions.
Not checking this point can lead to spectacular disappointments: a field opposite the house turned into a logistics zone, construction of a multi-story building blocking the view, restrictions preventing a home office or the creation of a separate studio, prohibition of short-term rentals in some central areas, etc.
In the Netherlands, a property’s value and quality of life depend heavily on future development projects. These decisions, made at several levels (state, province, municipality) under the new Omgevingswet law, are recorded in a constantly evolving municipal environmental plan. Neglecting to consult this document means ignoring a key factor for your investment.
Environmental constraints, particularly related to nitrogen emissions around Natura 2000 areas, have become much stricter following several court rulings. They slow down or block certain construction projects. A buyer counting on a large neighboring housing project or a specific development should know that these projects are sometimes very uncertain and subject to appeals.
Confusing Property Ownership and Residence Status
Many expats imagine that buying a home will facilitate their residence or visa acquisition. In the Netherlands, this is not the case: the residence permit depends on other criteria (employment contract, family reunification, highly skilled migrant status, etc.) and no “golden visa” program linked to real estate exists.
Buying a property in the Netherlands does not protect against the termination of a temporary residence permit. A foreigner who loses their residence permit could find themselves the owner of an apartment without being able to legally reside there.
Not factoring this reality into your long-term strategy is a frequent mistake, particularly among non-resident investors who later plan to move to the Netherlands.
Underestimating the Importance of a Buyer’s Agent and Legal Advice
Because housing supply is scarce and listed properties disappear quickly, many buyers think they will save time by dealing directly with the seller’s agent. However, this verkoopmakelaar exclusively defends the seller’s interests: obtain the best price, with the fewest conditions and the greatest transaction security.
Going without a buyer’s agent (aankoopmakelaar), especially when you don’t know the local market, means depriving yourself of:
Professional support includes early access to some properties, comparative price analyses in the neighborhood, a bidding strategy tailored to the property and demand, critical expertise on the building’s condition, the VvE, erfpacht, and zoning plan, as well as support in drafting the offer and clauses.
The fees (often 1 to 2% of the price or a flat fee of a few thousand euros) may seem high, but they are rarely more than what an ill-informed buyer ends up overpaying or losing in poor negotiation. Similarly, signing a purchase agreement without review by a lawyer or specialized legal expert can expose you to unbalanced clauses, very unfavorable limitations on seller liability, or poorly understood obligations.
Letting Emotion Overrule Analysis
Finally, a widespread mistake, especially in large cities where supply is scarce, is letting urgency and a love-at-first-sight feeling drive the decision:
To succeed in a property purchase, avoid: systematically overbidding beyond your budget, waiving protective clauses to please the seller, overlooking structural defects or inspection reports, and not considering the property’s resale or appreciation potential.
In a overheated market, the temptation is great to accept everything. Yet, discipline remains crucial: set an absolute ceiling (purchase + costs + renovations), know when to walk away if the price exceeds the appraised value by too much, meticulously check the VvE and zoning plan, get an inspection even if it delays the process a bit, and demand a legally balanced purchase agreement.
Conclusion: Turning a Pitfall-Laden Path into a Well-Controlled Decision
The Dutch real estate system offers many guarantees: reliable land registry, neutral notary, clear tax framework. But these same rules also create blind spots for buyers who rely on their national habits or half-baked information.
The most common mistakes when buying a property in the Netherlands—such as underestimating costs (*kosten koper*), misinterpreting the transfer tax, ignoring *erfpacht* (leasehold) or VvE (homeowners’ association) charges, skipping an inspection, signing a purchase agreement without strong suspensive clauses, neglecting taxation (Box 1 / Box 3), or forgetting to check the zoning plan—can be avoided. To anticipate them, adopt a rigorous method: establish a realistic budget, consult official registers (Kadaster, WOZ, omgevingsplan), get advice from a mortgage advisor experienced with international profiles, choose your notary carefully and possibly a buyer’s agent, and have all contracts legally validated.
Buying in the Netherlands will remain a demanding exercise, especially in a market where prices often exceed listings and local rules are complex. But for those who take the time to understand these specificities and integrate them into their strategy, what initially looks like a minefield transforms into a well-marked path, where each pitfall avoided strengthens the investment’s solidity and the owner’s peace of mind.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
