Netherlands: Guide to Buying Costs and Procedures
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Total transaction costs are moderate in the Netherlands
How high are realtors’ and lawyers’ fees in Netherlands? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Transfer Tax | 6% | buyer |
| Legal Fees | 1% - 1.5% (+ 19% VAT) | buyer |
| Registration and other Fees | 1% - 1.2% | buyer |
| Agent's Fee | 1% - 2% (+ 19% VAT) 1% - 2% (+ 19% VAT) |
buyer seller |
| Costs paid by buyer | 9.33% - 11.36% | |
| Costs paid by seller | 1.19% - 2.38% | |
| ROUNDTRIP TRANSACTION COSTS | 10.52% - 13.74% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in Netherlands?
There are no restrictions on foreign ownership of property.
The process of purchasing a home in the Netherlands involves a price agreement between seller and buyer (facilitated by the agents or makelaars of course), and the signing of a temporary contract (voorlopig contract) that will cover all aspects of the sale and protect involved parties during the process. A 10% down payment is then paid to the seller after which a copy of the signed contract will be sent to a notary public (notaris) where the transfer of ownership will be completed. Consequently, the registry of the property will be done by the notaris at the Public Registry Office or the Kadaster.
It takes an average of five days to complete all the four procedures needed to register a property in the Netherlands.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Legal fees:
Dutch law mandates that civil law notary must be hired to perform the property registration process in Netherlands. Legal fees are negotiable. Some civil law notaries charge a percentage of the property value while some charge by the hour of work. On the average, fees are around €1,000 to €3,500 or around 1% - 1.5% of the property value, plus 19% VAT.
Estate agent fees:
Effective June 01, 2006, Business Tax is levied on the entire proceeds from the disposal of a residential property held by the owner for a period of less than five years (previously two years). If the property is held for more than five years, the Business Tax works like a capital gains tax. The disposal of Normal Standard Residential Properties (NSRP) held for over five years is EXEMPT from Business Tax.
Netherlands - more data and information
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