Property Investment in the Netherlands: Foreigner’s Guide (2025)

In the Netherlands, property ownership is open to both residents and non-residents, including foreign nationals. The country maintains relatively liberal rules when it comes to property ownership by individuals from abroad.

Whether you're looking to diversify your real estate portfolio, purchase a second home, or invest in a rental property, this 2025 guide covers everything you need to know about buying property in the Netherlands as a foreign investor.

12 Things to Know Before Buying a Property in the Netherlands

1. Can Foreigners Buy Property in the Netherlands
2. Best Cities and Regions to Invest
3. Square Meter / Square Foot Prices
4. Median Asking Prices
5. Rental Yields and Rents
6. Market Performance (Past and Present)
7. Landlord and Tenant Laws
8. Property Related Taxes
9. Buying (and Selling) Costs
10. Short-Term Rental Regulations
11. Mortgage and Financing Options
12. How to buy property in the Netherlands: step-by-step

1) Can Foreigners Buy Property in the Netherlands?

Yes, foreign nationals can purchase property in the Netherlands.

The country has relatively liberal rules regarding property ownership, with very few exceptions.

Both residents and non-residents are eligible to buy property.

2) Best Regions and Cities to Invest

The following cities provide a variety of real estate opportunities, from vibrant urban living and high-end properties to tech-driven hubs and government-focused districts, each suited to different investor goals and lifestyle preferences.

Amsterdam

As the capital and economic heart of the Netherlands, Amsterdam is a top destination for both residential and commercial real estate. Popular districts like Amsterdam-Zuid, De Pijp, and the Jordaan are highly sought after due to their historic charm, vibrant culture, and excellent infrastructure. The city’s strong rental market, international appeal, and limited housing supply make it an attractive option for investors.

Rotterdam

Known for its modern architecture and dynamic urban development, Rotterdam is a growing hub for property investment. Areas like Kop van Zuid and Katendrecht offer a mix of waterfront apartments and revitalized industrial spaces. The city’s focus on innovation and sustainability adds long-term value for investors seeking both residential and commercial opportunities.

The Hague (Den Haag)

As the seat of the Dutch government and home to many international organizations, The Hague offers a stable and upscale real estate market. Neighborhoods such as Statenkwartier, Benoordenhout, and Scheveningen (by the beach) are favored for their elegant housing, proximity to institutions, and expat-friendly environment.

Utrecht

Located in the heart of the country, Utrecht blends medieval charm with a growing urban feel. The city has a strong student population and a well-developed infrastructure, making areas like Leidsche Rijn and the city center popular for rental properties and long-term investment. Its central location also supports strong commuter demand.

Eindhoven

A key technology and innovation center in the Netherlands, Eindhoven is known for its connection to the tech industry and institutions like Philips and ASML. Real estate in areas such as Strijp-S and Meerhoven attracts young professionals and tech talent, creating a steady demand for modern housing solutions.

3) Square Meter / Square Foot Prices

Square meter prices in the Netherlands are higher than many European countries - particularly in Amsterdam, where demand continues to outpace supply.

However, more affordable options can still be found in cities like The Hague and Rotterdam, offering buyers a wider range of entry points into the Dutch housing market.

As of December 2024, the square meter prices in the Netherlands are approximately:

• Amsterdam - €8,384
• Rotterdam - €5,350
• The Hague - €5,860

4) Median Asking Prices

Median asking prices for 1-bed apartments vary across key Dutch cities as of mid-2025:

• Amsterdam - €422,000
• Rotterdam - €299,000
• The Hague - €285,000

5) Rental Yields and Rents

Rental yields in the Netherlands tend to be stronger than in many Western European countries. Gross returns average around 6%, and some cities, like Rotterdam, pushing even higher.

While Amsterdam's rental yields are more modest due to higher property prices, other cities such as The Hague offer more attractive income potential.

Factoring in steady demand, tenant-friendly regulations, and recent rent growth, the Dutch rental market can present a compelling option for long-term investors seeking both income and stability.

Netherlands' rent price index:

Data Source: NVM (Nederlandse vereniging voor Makelaars).

Below are the average gross rental yields in key Dutch cities:

• Amsterdam - 5.00%
• The Hague - 6.29%
• Rotterdam - 7.33%

As of December 2024, rental rates for 1-bed properties in major cities are approximately as follows:

• Amsterdam - €1,870
• The Hague - €1,185
• Rotterdam - €1,850

6) Market Performance (Past and Present)

The Netherlands' prices climbed steadily throughout the 2010s. Then came the pandemic, and prices really took off, jumping 10.8% in 2020 and nearly 20.2% in 2021.

Once mortgage rates began climbing, the market barely slowed. After a small dip of in 2023, prices surged back in 2024. Demand and supply shortages - especially in cities like The Hague, Rotterdam, and Amsterdam - have kept the Dutch housing market humming.

Here's a year-by-year look at how the Dutch market has performed.

Netherlands' house price annual change:

Data Source: Statline Netherlands.

7) Landlord and Tenant Laws

Netherlands's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. In the Netherlands, the law provides strong protection for tenants, ensuring security of tenure, the right to privacy from the landlord, the right to terminate the rental agreement, and various other protections.

8) Property Related Taxes

The Netherlands also imposes several taxes on investment properties, though the structure is quite different from other countries. Rental income isn't taxed directly. Instead, it falls under Box 3, the wealth tax. This system assumes a fixed annual return on your net property value (between 0% and 1.76% in 2024), and taxes it at a flat 36% rate. That means you can't deduct actual expenses or depreciation.

Note: If you're seen as a property trader (for instance, flipping homes frequently or running a leasing business), your income may instead be classified under Box 1, subject to progressive income tax rates of up to 49.5%. Capital gains from selling a primary house are exempt, but gains tied to business activity could invoke Box 1 treatment.

For companies or larger portfolios, profits fall under corporate income tax, currently 19% on the first €200,000 and 25.8% above that. This option can offer tax efficiency and flexibility for serious investors.

9) Buying (and Selling) Costs

Compared to many other European countries, the Netherlands' property transaction costs are in the moderate-to-high range.

Buyers can expect to pay an additional 5% to 15% on top of the purchase price, depending on whether the property is a main residence or not. Seller costs are typically low, around 1% to 2%.

Here's a full breakdown:

10) Short-Term Rental Regulations

Short-term rentals are legal in the Netherlands but heavily regulated, especially in cities like Amsterdam, The Hague, and Utrecht. Hosts are generally required to register their property, display a registration number, and follow strict time limits.

In Amsterdam, the current limit allows homeowners to rent out their primary residence for up to 30 nights per year. However, beginning April 1, 2026, that limit will be reduced to 15 nights per year in central areas such as the city center and De Pijp. Rentals must be registered, permits may be required, and there is a maximum of four guests per stay.

Renting out a second home or social housing is not allowed without special authorization. Violating these rules can result in steep fines up to €87,000 - and even higher for repeat offenses.

Income from short-term rentals is taxable in the Netherlands. Whether it's considered business or investment income depends on how often the property is rented and whether additional services (like cleaning or meals) are provided.

Authorities actively enforce these rules, using online platform data and neighborhood reports. While regulations have reduced the number of short-term stays in recent years, housing pressures remain a concern in popular cities.

11) Mortgage and Financing Options

If you're planning to finance your property purchase in the Netherlands, expect a structured but accessible market. Mortgages are available to both residents and non-residents, including foreign nationals. However, keep in mind that lending criteria may be stricter for those earning in non-EU currencies or with temporary residency status.

Most banks require a minimum 10-20% down payment, though expats or non-EU buyers might need more, and buy-to-let mortgages for investment properties often demand 25-40% upfront.

Mortgage brokers can be invaluable in navigating the range of options-from standard annuity loans to green mortgages-and in helping you qualify under the National Mortgage Guarantee (NHG), which offers lower interest rates for homes under the lifetime limit (€405,000 in 2025).

Interest rates vary depending on the loan-to-value (LTV) ratio and fixed-rate period. While rates climbed during 2022-23, they have eased slightly in 2024. It's worth contacting multiple lenders - banks, pension-backed mortgage providers, and expat-focused advisors - to compare terms and find an option that fits your profile.

Netherlands' mortgage loan interest rates:

Data Source: ECB.

12) How to Buy Property in the Netherlands: Step-by-Step

1. Research and Find Property: Familiarize yourself with different areas of the country. Use platforms like Funda.nl, Jaap.nl, or work with a local buyer's agent. Leasehold land is common in cities. Check if the property is freehold or has ongoing fees.
2. Research Pricing, Yields, and Legal Restrictions: Prices and yields vary by region. For example, Rotterdam offers high yields, while Amsterdam has lower returns but stronger demand. Foreigners can buy freely, but mortgage approval may require Dutch residency or a larger deposit.
3. Research Long-Term Market Changes: Check whether the housing market has remained stable over time. How has the mortgage sector responded to significant fluctuations or economic shifts?
4. Research Local Taxation and Landlord Laws: What are the actual costs involved in completing the property transaction? If you intend to rent out the property, what are the common regulations and practices governing the relationship between landlords and tenants?
5. Get Legal Advice: Hire an English-speaking civil-law notary. They ensure the property is legally sound and prepare all contracts. You may also want a lawyer to review complex leasehold or HOA terms.
6. Make an Offer and Conduct Due Diligence: Offers usually include conditions (like financing or inspection). If accepted, sign a preliminary contract. Note that offers are usually higher than the selling price due to the high demand. A three-day cooling-off period applies, so you can cancel within that time period - no reason needed. Hire a building inspector to check for defects.
7. Sign the Sale Contract: The notary prepares and explains the final deed. Both buyer and seller sign in the notary's presence. The notary is a neutral party in the transaction.
8. Payment and Registration: Transfer funds to the notary's escrow account. The notary pays taxes (e.g., 2% transfer tax), files the land registration, and transfers ownership.

Timeline: Expect 8-12 weeks from offer to official registration.

Need Help?

Buying property in a foreign country can feel overwhelming, but we're here to help.

At Global Property Guide, we offer:

• Data-backed insights on property prices, rental yields, and taxes
• Country-specific legal and tax guidance through our partner network
• Pre-screened investment properties, including income-generating Airbnb units
• 1-on-1 consultations with real estate experts focused on international buyers
• Step-by-step buyer support, from due diligence to closing

Whether you're looking for your first investment in the Netherlands or expanding your international portfolio, we can help you make smart, secure decisions.

Contact our team or book a free consultation to get started.