Renting or Buying a House in the Netherlands as an Expat?

Renting a Home in the Netherlands – Pros and Cons

Advantages of Renting

Renting offers flexibility and limited risk, especially if you are unsure how long you will stay in the Netherlands.

Benefits of renting include:

• You can move out at short notice
• The landlord is responsible for major maintenance and insurance
• No risk if house prices fall
• Strong tenant protection laws
• No property tax (OZB)
• Possible rent allowance if your income is low
  
  

Disadvantages of Renting

The biggest downside of renting is cost — and lost opportunity.

Disadvantages of renting:

• High rental prices, especially in the free market
• Annual rent increases
• Limited availability and long waiting times
• No equity building
• Limited or no renovation options
• Any improvements benefit the landlord
• Property often must be returned to its original state
  
  

In many cases, monthly rent can be hundreds of euros higher than a comparable mortgage payment.

Buying a House in the Netherlands – Pros and Cons

With relatively low mortgage interest rates and tax advantages, buying can be very attractive for expats.

Advantages of Buying

• Monthly housing costs are often lower than rent
• Mortgage interest is tax deductible
• Fixed monthly payments for long periods
• You build equity with every payment
• You benefit from rising house prices
• Full freedom to renovate
• Wider choice of properties
• Attractive purchase arrangements and subsidies

Curious what you could afford?

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Risks of Buying a House in the Netherlands

Buying does come with risks, but they are often more limited than expats expect.

Main risk: declining property value

If house prices fall and you need to sell, you remain responsible for repaying the mortgage. However:

• You typically repay around 10% of the mortgage within 5 years
• A 10% price drop would often not result in residual debt
• Monthly savings compared to renting can be set aside as a buffer

With proper planning, this risk is manageable.

National Mortgage Guarantee (NHG)

The National Mortgage Guarantee (NHG) offers additional protection.

• In 2024, mortgages up to €510.000 may qualify
• Protects against residual debt caused by events beyond your control, such as:
  • Divorce
  • Involuntary unemployment
  • Inability to work
• Costs 0.6% of the mortgage amount
• Usually results in lower interest rates

For many expats, NHG significantly reduces financial risk.

Hidden Defects – What Are the Risks?

Dutch law protects buyers against undisclosed defects.

Seller’s obligation

Sellers must disclose known issues such as:

• Structural damage
• Leaks
• Rotten floors
• Serious nuisance issues

Failure to do so can make the seller liable – even after completion.

Buyer’s obligation

Buyers must also investigate the property. In older or suspicious properties, a structural survey is recommended.

• Costs a few hundred euros
• Can be used to renegotiate the price
• Can justify cancelling the purchase

Renting vs Buying – Side-by-Side Comparison

Benefits of Renting

• Flexibility to move
• No maintenance responsibility
• No property tax (OZB)
• Strong tenant protection
• Possible rent allowance

Disadvantages of Renting

• High and rising rents
• Limited supply
• No equity or wealth building
• Limited renovation options

Benefits of Buying

• Often cheaper than renting
• Tax-deductible mortgage interest
• Fixed monthly payments
• Equity growth
• Freedom to renovate
• Benefit from rising house prices

Disadvantages of Buying

• Maintenance responsibility
• Property and municipal taxes
• Insurance costs
• Interest rate may change after fixed period
• Selling can take time*

* Some housing corporations offer buy-back guarantees within a fixed period.