The Property Banks Buyers Guide to Holland
Holland / Netherlands is an
environmentally conscious country with a pleasant atmosphere. You
will find a mix of old and new architecture and an affinity to
bicycle transport, enjoyed on mainly level terrain. Main language is
Dutch with German, French and English also widely spoken.
Capital gains tax is charged at normal income tax levels and can be
deferred if sale proceeds are reinvested in another similar Real
Estate purchase. Property shareholding should not incur a chargeable
gain.
There are no restrictions on foreign ownership.
Property and Real Estate Prices in the Netherlands / Holland
Range Varies, for example:
From around £300,000 / $435,000 plus for Row Houses (Cottage or
older style property).
From around £150,000 / $215,000 for town house accommodation.
From around £55,000 / $80,000 for an apartment.
From around £200,000 / $300,000 for Villa-style houses.
Locations to buy property and real estate in the Netherlands/
Holland
Cosmopolitan life can be found in the Netherlands capital,
Amsterdam. Maastricht 's older city centre is popular especially
with the upper classes reflecting French style and ambience.
Hilversum and its surrounding area is more popular for countryside
enthusiasts and enjoys relatively easy commuting to Amsterdam.
Rotterdam has been largely rebuilt since World War II and there you
will find lots of new ultramodern accommodations.
The Hague offers large detached country homes and cottages near the
sea, row houses and apartments.
Living Costs in the Netherlands
Holland enjoys high living standards supported by a good
infrastructure. Some of the older cities and towns however, can
struggle under the weight of modern transport. Community services
are well maintained.
Buying Property or real estate in the Netherlands / Holland
When you find a suitable Dutch freehold property in the Netherlands
a purchase agreement should be drawn up binding both parties to the
real estate purchase. A notary will often be used for this. The sale
is transferred under separate contract by an official notary who
will conduct searches at land registry and register new ownership.
It is also possible to enter into an option right to buy a property
or have the first right of refusal on that property.
Solicitor / Lawyer
It is advisable to use a solicitor/lawyer or notary to draw up
initial contracts and liase with the official notary when buying
property or real estate in the Netherlands / Holland.
Fees
Legal transfer costs should amount to a tax of 6% of the properties
market value or purchase price, collected by the notary on
completion and this can also apply to property stock holdings.
Notary fees will be around 1.5% and will incur V.A.T on top at the
current rate of 17.5%.
Real Estate Agent fees will vary between 1.5-2.5%.
When V.A.T has been charged on newly constructed property,
registration duty is not always due.
Property Tax
Real Estate tax is charged annually by local authorities in the
Netherlands. This local tax is charged on ownership or use of
property and is based on the market value or square footage of the
property. These taxes vary between districts and will normally be
reviewed after five years. Some other small local service charges
exist.
Mortgages
Most Dutch banks and mortgage providers will normally allow you to
borrow up to 80-85% of the buying price and life mortgages and
savings mortgages are the most popular types of mortgage in the
Netherlands. Interest rates would be higher for any loans above the
normal the normal percentage borrowings.
It can be beneficial to use off shore companies and property
shareholding investment can have capital gains advantages.