Foreigners have the right to buy residential and commercial real estate in the Netherlands without restriction, and both through an individual and through a legal entity. It does not matter whether you live in the country permanently or manage everything remotely – you have the full right to rent or sell property in the Netherlands. In itself, the purchase of real estate is not the basis for obtaining a residence permit. But owning property proves your stable situation and simplifies the process of obtaining permission on another basis. What taxes will have to pay, owning a house or apartment in the country, how much to spend on utilities and life – read our article.
Owners of residential and commercial property, and tenants of garages, warehouses or commercial premises pay property tax (onroerendezaakbelastingen, or OZB). It is a fixed percentage of the property’s official assessed value (WOZ), which varies depending on the region, type of property and use.
If you resell the property after being the owner for less than a year, the notary or agent must arrange with the new owners to pay the appropriate portion of the total tax.
As we have already noted, the percentage varies from city to city. For example, the municipality of Amsterdam sets the following tax rates:
0.0428% for residential property owners;
0.1796% for owners of commercial properties;
0.1293% for tenants of commercial property.
Residential tenants do not pay property tax.
Nationwide, the average property tax rate is 0.1-0.3%. If the property is purchased with a mortgage, the interest on the loan can be deducted from the official assessed value.