Buying Your First House in the Netherlands – It's Easier Than You Think!

Buying a house is a major milestone in life. After signing the purchase contract, you are typically required to provide a deposit, usually 10% of the purchase price, as security for the seller. In most countries, this deposit must come from your own savings, as mortgages typically cover only 80-90% of the house's market value. 

In the Netherlands, however, the rules are more flexible. Here, you can secure a mortgage for up to 100% of the house's market value, meaning no personal contribution is required for a down payment. The market value is determined by an independent specialist in a taxation report.  

If you cannot or do not want to use your own money for a 10% deposit in a notary's account, you can set up a bank guarantee. The costs of the bank guarantee can differ per bank, usually 1% of the amount of the deposit. 

This means the only upfront costs you need to cover from your savings are the buyer’s costs (kosten koper) and, if applicable, any amount you bid above the house’s market value as stated in the taxation report. 

In this blog, we’ll break down the key expenses you need to plan for when purchasing your first home. 

Buyer’s Costs 

In Dutch, the kosten koper (k.k.) refers to the expenses that you must pay from your own pocket when buying a house. Fortunately, many of these costs, especially those related to financing the property, are tax deductible. This means you can claim reimbursement when filing your annual income tax return in the following year.  

Tax Deductible Costs 

Mortgage Advisor  

A mortgage advisor guides you through the mortgage process, presenting possible financing options and addressing all your concerns. They handle the paperwork, ensuring a hassle-free experience. For example, M/V Works advisors work with over 30 lenders, helping you secure the best possible mortgage terms.  

Valuation Report 

An independent appraiser creates this report, which evaluates the property's market value. The report influences the loan-to-value ratio, determining how much the bank will lend you (unless your loan-to-income ratio sets a lower limit).  

Notary 

The notary ensures the legality of mortgage documents, including the transfer deed and mortgage deed. They also manage payments to the parties involved. Notary costs related to financing are tax deductible.  

National Mortgage Guarantee (NHG) 

If you take out a mortgage with the NHG (for properties up to €450,000), you'll pay an additional 0.4% of the mortgage amount. However, this guarantee ensures you receive the lowest possible interest rate.  

Technical Inspection 

A technical inspection evaluates the property's condition, such as its structure, electrical systems, and overall safety. While it’s more common for houses than apartments, this inspection can provide invaluable insights.  

Not Tax Deductible Costs 

Transfer Tax 

This is a 2% tax on the house price, required for transferring ownership. However, first-time buyers under 35 years old purchasing a house worth less than €525,000 (in 2025) are exempt from this tax.  

Real Estate Agent 

Your real estate agent assists in finding and purchasing your dream home. They handle tasks such as setting up viewings, preparing bidding strategies, coordinating parties, and ensuring a smooth process until you receive the keys.  

Bank Guarantee 

A bank guarantee is a commitment from your bank to cover the 10% deposit if required. This ensures secure transactions and provides legal protection. 

Interpreter at the Notary 

If you’re not fluent in Dutch, a certified interpreter is necessary during the notarization process to ensure you understand all documents and verbal agreements.  

 The table below presents an overview of the buyer’s costs:  

Buying a house in the Netherlands can be an accessible process, especially for first-time buyers. With the right preparation and expert guidance, you’ll find that covering costs and financing your home is more manageable than you might have expected.  

This article is purely indicative and aims to provide general information. Costs may vary based on individual circumstances, property price, and service providers. Feel free to contact us for more information.