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Mortgage for entrepreneurs in The Netherlands (ZZP, VOF, BV)

23rd of February 2024

Entrepreneurs (ZZP, VOF, BV) in The Netherlands can obtain a mortgage. The mortgage application process and the method of assessing maximum mortgage capacity differs from the standard situation for people with an employment contract. 

However, with appropriate preparation and support from financial advisors, it is possible to get a mortgage even with one year of activity as an entrepreneur.

The key documents on the basis of which the maximum mortgage capacity is determined is the balance sheet and the profit and loss statement (net fiscal income) from business activities.

1. Company active up to 3 years

For companies with a shorter history, in addition to income from previous years, income from the current year and company growth forecasts prepared by an accountant are important. Moreover, some banks for companies with a history of less than 3 years do not look at 100% of net profit, but at e.g. 90% or 70% and determine mortgage capacity on this basis. There are also banks on the market that, given good results and only one year of operation of company, are willing to determine mortgage capacity taking into account 100% profit, but in return they offer a surcharge on the interest rate.

2. Company active over 3 years

In the case of a company operating for at least 3 years, the average annual turnover (after deducting costs) for the last 3 years is taken into account when assessing the max. mortgage capacity. Additionally, the lender looks at the growth/decrease trends in your company's turnover, thereby determining the potential level of risk. If the turnover for the last year is significantly lower compared to previous years, then the lender may use the last year as a reference and based on it determine the maximum mortgage capacity.

Depending on your individual situation, there are also other aspects you should pay attention to when determining your maximum mortgage capacity:

3. Income history

If you have a short business history, you can provide a history of payments from your previous employer in The Netherlands.

If you ran a similar business in another country and received income in a different currency, the bank may consider this data as confirmation of your income history.

4. Having several companies

If you have several companies or own more than 5% of a company (e.g. several BV companies with different activities), lenders analyze the results of all companies, not only of the one applying for a mortgage. 

5. Mortgage after 1st of July

If you plan to take out a mortgage after 1st of July you must provide the company's final results from the previous year, prepared in the tax return by an accountant.

6. Other loans and mortgage capacity

Every other loan affects your maximum mortgage capacity. For example, a car loan/leasing, an education loan or a home renovation loan affect your mortgage capacity.

7. Taxes and mortgage capacity

If you deduct many expenses related to your company from your turnover, your profit will be lower and, therefore, the taxable amount will be lower. Unfortunately, this also affects your maximum mortgage capacity. The lower the profit after deducting costs, the lower the mortgage capacity.

To sum up, when determining the maximum mortgage capacity of an entrepreneur (ZZP, VOF, BV), the lender takes into account:

  • company results and development
  • legal form of the company - different rules apply in the case of ZZP, VOF or BV
  • forecasts for the future of business
  • risk associated with the company
  • other financial liabilities (e.g. leasing)

For those having their own company, it is highly recommended to consult a financial advisor to discuss your financial situation and options.

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