Last Updated:
Nov 07, 2008
After a decade-long property boom, House prices are leveling off in the Netherlands.
In September 2008, the price index for owner-occupied houses was 2.5% up on a year earlier, according to Central Bureau of Statistics. When adjusted for inflation, the index fell 0.5%.
In Amsterdam, the capital, the average house price was €3,360 per sq. m., 7.5% up from a year earlier. In Utrecht, the Netherland’s 4th largest city, house prices rose 7% to €2,549 per sq. m. over the same period.
House prices rose in The Hague by a mere 1.1% (to €2,071 per sq. m.). Similarly in Rotterdam, house prices rose only 1.2% (to €1,911 per sq. m.).
There are no restrictions on foreign ownership of property.
In September 2008, the price index for owner-occupied houses was 2.5% up on a year earlier, according to Central Bureau of Statistics. When adjusted for inflation, the index fell 0.5%.
In Amsterdam, the capital, the average house price was €3,360 per sq. m., 7.5% up from a year earlier. In Utrecht, the Netherland’s 4th largest city, house prices rose 7% to €2,549 per sq. m. over the same period.
House prices rose in The Hague by a mere 1.1% (to €2,071 per sq. m.). Similarly in Rotterdam, house prices rose only 1.2% (to €1,911 per sq. m.).
There are no restrictions on foreign ownership of property.
Read Price History »
RENTAL YIELDS
Last Updated: Jul 29, 2009
Rental yields in Amsterdam have decreased in 2009 to 5.71%, down from 7.69% from the previous year. Smaller units of 70 square metres (sq. m.) generate gross yields of around 5.95%.
The average selling price of an Amsterdam apartment is around €4,437 per sq. m.
Apartments in The Hague have a slightly lower average yields at 5.5% for a 120-sq. m apartment, compared to 5.61% in Amsterdam. The Hague’s per sq. m prices are lower at €3,102 per sq. m.
The average selling price of an Amsterdam apartment is around €4,437 per sq. m.
Apartments in The Hague have a slightly lower average yields at 5.5% for a 120-sq. m apartment, compared to 5.61% in Amsterdam. The Hague’s per sq. m prices are lower at €3,102 per sq. m.
TAXES AND COSTS
Last Updated: Nov 19, 2008
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 15% | 17.3% | 20% |
| Click here to see a worked example | |||
Source:
Disclaimer |
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Rental Income: The income tax on renting residential property is quite high, though the tax is not really an income tax. In reality it is a flat tax, with 30% levied on the assumed rental yield, the basis of assumption being that a rental yield of 4% is made on the assets. In effect, an annual tax of 1.2% is imposed on the value of the assets. If your rental property yields more than 4%, the proportionate tax rate is lower.
Capital Gains: The sale of real estate that was used as part of a rental business enterprise, capital gains are taxed as part of income in Box 3 i.e. 30%.
Inheritance: Wealth acquired by inheritance from an individual who has properties in the Netherlands is subject to inheritance tax. Different rates apply, depending on the relationship between the heir and the testator where there are three categories.
Residents: Residents are taxed on their worldwide income.
Capital Gains: The sale of real estate that was used as part of a rental business enterprise, capital gains are taxed as part of income in Box 3 i.e. 30%.
Inheritance: Wealth acquired by inheritance from an individual who has properties in the Netherlands is subject to inheritance tax. Different rates apply, depending on the relationship between the heir and the testator where there are three categories.
Residents: Residents are taxed on their worldwide income.
BUYING GUIDE
Last Updated: Nov 08, 2006
Total transaction costs are between 10.5% and 13.74% of the total dwelling price for existing houses, which is moderate by international standards. The bulk of these costs are paid by the buyer, including the Transfer Tax (6%), legal fees and registration fees. Real estate agent’s commission at 2% to 4% (plus 19% VAT) is shared between buyer and seller.
If the property is newly constructed (or less than two years old) the Transfer tax is replaced with the 19% VAT.
If the property is newly constructed (or less than two years old) the Transfer tax is replaced with the 19% VAT.
LANDLORD AND TENANT
Last Updated: May 22, 2008
Dutch rental market practices are pro-tenant.
Rent: Landlords can set the rent freely and adjust the rent, for properties above the ‘liberalization rent limit’ of €604.72 per month. A deposit of two to three months is customary.
Tenant Security: The most dangerous aspect for a landlord in the Netherlands is that once a property has been rented, tenants are almost impossible to evict. The basic Dutch rental contract is one of unlimited duration. Landlords can only give notice in strictly defined cases, and it is extremely difficult for owners to evict tenants once they are established.
Rent: Landlords can set the rent freely and adjust the rent, for properties above the ‘liberalization rent limit’ of €604.72 per month. A deposit of two to three months is customary.Tenant Security: The most dangerous aspect for a landlord in the Netherlands is that once a property has been rented, tenants are almost impossible to evict. The basic Dutch rental contract is one of unlimited duration. Landlords can only give notice in strictly defined cases, and it is extremely difficult for owners to evict tenants once they are established.
ECONOMIC GROWTH
Last Updated: Nov 07, 2008
Slower economic growth expected
The Netherlands, with a population of 16.5 million, is one of the most densely populated countries in the world, with GDP per capita of US$46,774 in 2007. It was one of the original countries to adopt the euro.The Dutch are strong advocates of free trade. Aside from the EU, it is an active participant in the United Nations. The Netherlands is also a member of other multilateral organizations such as the NATO, the Organisation for Security and Co-operation in Europe, the Council of Europe, the OECD, the WTO, and the IMF.
The Dutch government is in the form of a constitutional monarchy with parliamentary system. The Netherlands is commonly described as a consociational state.
During the previous decade, policymaking by consensus between the government, unions and employers kept wages low, which led to an unprecedented economic boom in the latter half of the 1990s, with virtually no unemployment, thriving growth, low inflation and strong exports.
Real private sector wages rose by an average of 3.6% annually between 1996 and 2001; while average inflation was only 2.7%.
The Dutch economy was in the doldrums from 2001 to 2005, during which it achieved an average GDP growth of 1.2% annually. Recently, the economy returned to form with 3.0% GDP growth in 2006 and 3.5% in 2007.
However, economic growth is expected to slow to 2.3% in 2008 and 1.0% in 2009, due to the weaker international economy and higher interest rates.
Inflation in 2007 was 1.6%, well below the euro area average. However, inflation is expected to rise to 2.9% in 2008 and 2.6% in 2009, due to higher indirect taxes.
