Netherlands – Property Taxes

What taxes and fees apply when buying a property in the Netherlands?

Anyone acquiring real estate in the Netherlands must pay transfer tax (overdrachtsbelasting). This represents the single largest transaction cost for the majority of purchasers, and the applicable rate is determined by the nature of the property and how the buyer intends to use it. In contrast to stamp duty in the UK — where progressively higher bands apply above different price thresholds — Dutch transfer tax is a single flat rate levied on the full purchase price.

The 2% rate covers homes that the buyer will occupy as their principal dwelling, including associated structures such as a garden, garage, or outbuilding. The standard rate for most other property types — including commercial buildings and land — stands at 10.4%. Buyers aged 18 to 35 who are purchasing their first home for personal occupation may qualify for a one-off 0% exemption, provided the purchase price falls below the statutory ceiling — set at €525,000 in 2025.

The 10.4% rate for investment properties and secondary residences remains in place throughout 2025. From 2026, however, this rate will fall to 8%, a change that may influence the timing decisions of investors and buyers of non-primary dwellings.

New-build properties are not subject to transfer tax. Instead, VAT (BTW) at 21% applies to new-build sales — this is paid by the developer and is ordinarily built into the sale price. Always confirm the VAT treatment of any new-build purchase directly with the developer and your notary. For 2025, the first-time buyer exemption threshold is €525,000 — always check the latest figure against the official source, as it is reviewed regularly.

To take advantage of the reduced 0% or 2% rate, buyers must sign a formal declaration in front of the notary prior to the title transfer. This statement confirms eligibility and confirms the property will be used as the buyer’s main home. Where a property is being purchased jointly, each individual buyer must submit their own declaration.

Transfer tax is not the only cost buyers must prepare for. An existing property purchase requires a notary to prepare both a transfer deed (akte van levering) and a mortgage deed (hypotheekakte). Notary fees for these documents typically fall somewhere in the range of €1,000 to €2,000 in total. Mortgage advisers also charge for their professional services, with fees generally running between €2,000 and €4,500, though these vary considerably.

In 2025, the overall cost of purchasing a main residence — encompassing taxes and professional fees — generally falls between 4% and 6% of the purchase price. Investors purchasing non-primary property face substantially higher costs. The table below outlines the principal expenses a buyer can expect to encounter in 2025:

Worked example: A 40-year-old buyer purchasing a primary residence for €400,000 pays transfer tax at 2%, equalling €8,000, plus notary fees of roughly €1,500 and a mortgage adviser fee of €2,500 — bringing the total transaction costs to around €12,000, or approximately 3% of the purchase price. An investor buying the same property at the same price would face transfer tax alone of €41,600 at the 10.4% rate.

The notary collects and remits transfer tax to the authorities as part of the deed transfer process. The buyer bears sole liability for transfer tax — it is not a cost borne by the seller. For current rates and thresholds, consult the Dutch government’s official transfer tax page or the Belastingdienst (Dutch Tax and Customs Administration).

What taxes and fees apply when selling a property in the Netherlands?

From a tax standpoint, selling property in the Netherlands is relatively straightforward compared with most other countries. No capital gains tax is levied on profits from selling a primary residence. Where the property is an investment, it will already have been subject to annual wealth tax under Box 3 throughout the ownership period, and there is similarly no specific “exit” tax triggered at the point of sale.

The most significant costs for sellers are estate agent fees and notary charges. Agents typically operate on either a commission basis (a percentage of the sale price, known as courtage) or a fixed fee. Approximately 76% of agents opt for percentage-based commission, and the national average in the Netherlands stands at around 1.16% of the sale proceeds — equating to an average of €5,666 for a typical house sale as of March 2025.

Commission rates display regional variation. In 2025, Amsterdam agents charge an average of 1.05% (€5,982), The Hague agents charge 1.1% (€5,066), Utrecht agents charge 1.14% (€5,716), Rotterdam agents charge 1.16% (€5,147), and Eindhoven agents charge 1.20% (€5,292).

Sellers also contribute a portion of the notary’s fees for preparing the deed of transfer, though this amount is generally smaller than the buyer’s notary bill. Where a property is sold part-way through the year, the seller is technically liable for the full year’s OZB, but it is standard practice for the notary to calculate and apportion this cost between the parties at completion.

A further requirement for sellers is obtaining a valid energy performance certificate (energielabel), which is legally mandatory when selling a home in the Netherlands. The cost of obtaining this certificate typically ranges from €100 to €400 depending on the property. No stamp duty, sales levy, or national government tax is charged directly to the seller at the point of disposal. Consult a registered Dutch estate agent (makelaar) and notary to establish your precise selling costs.

How does capital gains tax work on property in the Netherlands?

Unlike France, Spain, or Australia — where sellers pay tax calculated on the profit made from disposing of a property — the Netherlands does not operate a conventional capital gains tax on real estate. Instead, the Dutch tax framework addresses property wealth and associated income through a structured “box” system within the annual income tax return.

Dutch residents are taxed on their worldwide income, which is divided into three separate schedules — or “boxes” — each governed by its own rules and rates. Box 1 covers income from employment and home ownership. A person’s primary residence (eigen woning) is classified within Box 1, and a notional rental value (eigenwoningforfait) is added to taxable income as a result. For homes with a WOZ value between €75,000 and €1.2 million, this notional figure is typically 0.35% of the WOZ value, rising to 2.35% for properties valued above €1.2 million. This is not a gains tax — it is a recurring income adjustment that has an ongoing effect on the annual tax bill.

No capital gains tax applies to the profit generated from selling a primary residence. This represents a substantial advantage over many comparable countries: a home bought for €300,000 and sold for €450,000 would produce a €150,000 gain entirely free of disposal tax.

Second properties, investment properties, and rental dwellings are classified under Box 3. Dutch Box 3 wealth tax is the annual levy on savings and investments where total assets exceed the tax-free allowance. In both 2024 and 2025, the individual tax-free threshold stands at €57,000 (€114,000 for fiscal partners). Assets above this threshold are subject to a 36% wealth tax rate applied to the notional return on taxable assets.

It is important to note that the Box 3 regime is undergoing substantial reform. From January 2028, subject to Senate approval, the Netherlands intends to introduce the Actual Return in Box 3 Act, under which residents will be taxed on actual returns from savings and investments at a flat rate of 36%. Under this new structure, unrealised property appreciation would only become taxable upon sale.

Worked example (current system, as of 2025): You own an investment property with a WOZ value of €350,000. Your total Box 3 assets — comprising the property value minus associated mortgage debt, plus other savings — above the €57,000 threshold attract a notional return rate set annually by the Belastingdienst. The resulting notional income is taxed at 36%. No additional tax is charged on the actual profit when the property is sold. Always verify the current notional return rates and thresholds with the Belastingdienst.

Dutch tax residents are liable for income tax on their worldwide income. Non-residents are taxed only on income arising specifically from Netherlands sources. Non-residents who hold Dutch investment property are subject to Box 3 assessment on that property. The primary residence gain exemption applies irrespective of residency, though non-residents should confirm their position under any applicable double taxation treaty.

Are there any ongoing annual property taxes in the Netherlands?

All property owners in the Netherlands are liable for an annual municipal property tax called Onroerendezaakbelasting (OZB). Comparable to council tax in the UK or local rates in Australia, OZB is a local levy that funds public services in the municipality — though unlike those systems, it is calculated as a proportion of the property’s assessed value rather than based on a fixed band or flat sum.

OZB is computed as a percentage of the WOZ value (Waardering Onroerende Zaken), which is a government-assessed property valuation updated annually by each municipality. OZB rates vary considerably from one municipality to the next, generally ranging from approximately 0.08% to 0.15% of WOZ value as of 2025.

Whoever owns the property on 1 January is liable for OZB for that entire calendar year. Residential tenants do not pay OZB — the obligation rests with the owner alone. Annual municipal tax bills are issued by the local municipality, typically between January and March each year.

In practical terms, annual property tax bills in the Netherlands typically run from around €500–€600 in municipalities with lower property values or rates, to €1,200–€1,800 or more in higher-value or higher-rate areas, given the significant variation across municipalities.

Beyond OZB, property owners are also billed for a rioolheffing (sewerage charge) and a water board levy (watersysteemheffing). The sewerage charge is a fixed annual sum applied to every property connected to the municipal wastewater network; as with OZB, the person who holds ownership on 1 January is responsible for the full year’s payment.

For those who occupy their property as a primary residence, the WOZ value also feeds into the Box 1 income tax calculation via the eigenwoningforfait — a notional rental value representing the benefit of living in a property you own. The Dutch tax authorities treat this implied benefit as a form of income, and the resulting notional amount — a percentage of the WOZ value — is added to taxable Box 1 income accordingly.

WOZ assessments are based on market values as of 1 January of the previous year. If you consider your WOZ value to be inaccurate, you may formally contest it (bezwaar maken) with your municipality within six weeks of receiving the assessment notice. For current OZB rates, contact your local gemeente (municipality), and visit the Waarderingskamer (Property Valuation Board) to understand the methodology used to determine your WOZ value.

How does inheritance tax apply to property in the Netherlands?

Both inheritance tax and gift tax are levied on all property inherited from, or donated by, an individual who was resident — or deemed to be resident — in the Netherlands at the time of death or the date of the gift. This means that the tax is triggered primarily by the residency of the deceased or donor, not by the location of the asset or the country in which the heir lives.

Tax is charged on the heir or recipient of the gift, wherever in the world they are based. If the deceased was a Dutch tax resident at the time of death, heirs living anywhere globally may be liable for Dutch inheritance tax (erfbelasting) on their portion of the estate — including any Dutch real property within it.

Dutch nationals who have emigrated from the Netherlands are treated as still being resident there for Dutch tax purposes for a period of ten years following their departure. This is a critical point for anyone who has left the country: their estate could still attract Dutch inheritance tax for a full decade after emigration.

When a home is inherited or gifted, its WOZ value is used to establish the taxable amount for inheritance and gift tax purposes. The WOZ value applied is typically that of the year in which the death occurred or the gift was made, or in some cases the preceding year, subject to the specific provisions in force at the time.

Inheritance tax rates and personal exemptions in the Netherlands are structured according to the relationship between the deceased and the heir. As of 2025, close relatives such as partners and children benefit from the lowest rates and the most generous exemptions, while more distant relatives and unrelated heirs are subject to higher bands. Partners and children, for example, generally pay 10% up to a specified threshold, rising to 20% on larger inheritances, while unrelated beneficiaries can face rates as high as 30–40%. Thresholds and rates are adjusted each year — always confirm current figures with the Belastingdienst or a qualified Dutch notary (notaris).

The Netherlands has concluded more than 100 comprehensive double taxation treaties covering income and capital, along with a limited number of estate tax agreements. Where an heir is also subject to inheritance tax in their own country of residence, the applicable double taxation treaty — if one exists between the two countries — may eliminate or reduce the risk of double taxation. Cross-border tax advice should be sought to assess individual circumstances.

How does gift tax apply to property transfers in the Netherlands?

Gift tax is levied on all property transferred by an individual who was resident — or deemed to be resident — in the Netherlands at the time of the donation. Dutch law treats inheritance tax (erfbelasting) and gift tax (schenkbelasting) as closely interrelated: they share the same rate structure, and gifts made during a person’s lifetime are treated in effect as an early transfer of future inheritance.

A gift made by a former Dutch resident — of any nationality — who left the Netherlands less than one year before the date of the donation remains subject to Dutch gift tax. This rule exists to prevent individuals from briefly relocating abroad in order to make gifts outside the Dutch tax net.

Annual gift tax exemptions exist within the Dutch system. Parents may gift children a tax-free amount each year — the exact threshold is reviewed annually, so the current figure should be verified directly with the Belastingdienst. A one-off elevated exemption was also previously available for children aged 18 to 40 to assist with purchasing, improving, or paying off a mortgage on a home. However, this so-called jubelton was substantially curtailed and effectively abolished from 2024. Confirm the current position with the Belastingdienst.

When a home is gifted, its WOZ value determines the taxable amount for gift tax purposes. If that value exceeds the applicable exemption, gift tax is charged on the excess at the same tiered rates used for inheritance tax. Gifts to unrelated individuals attract the highest rate bands. Both residents and non-residents who receive a gift from a Dutch-resident donor may be liable for Dutch gift tax. Legal title to real estate can only be transferred through a notary, even when the transfer is made by way of gift.

How is rental income from property taxed in the Netherlands?

The Netherlands takes a distinctive approach to the taxation of rental income — one that diverges considerably from systems used in most other countries. Rather than taxing actual rent received, the Dutch framework taxes a notional return on the value of the property under Box 3, at least for properties that are not the owner’s primary residence.

Rental income follows the rules applicable to the taxation of dividends and interest — meaning it falls within Box 3. The actual rent received is not directly subject to income tax as such. Instead, the value of the rental property, net of any associated mortgage debt, is included in the total Box 3 asset base, and a notional return is applied to that net figure. The resulting notional income is taxed at 36% in both 2024 and 2025.

If the level of activity involved in letting a property goes beyond that of a passive investor — for instance, where a landlord is actively running what amounts to a business — the Belastingdienst may treat the income as arising from business activities, making it taxable as income from other activities under Box 1 at progressive rates. This scenario most commonly arises with intensive short-term rental operations, such as frequent guest turnovers via holiday letting platforms.

Worked example (as of 2025): You own a rental flat with a WOZ value of €250,000 and an outstanding mortgage of €100,000. Your net Box 3 asset value is therefore €150,000. After subtracting the individual tax-free threshold of €57,000, €93,000 is subject to Box 3. The Belastingdienst applies a notional return rate to this figure, and you pay 36% tax on the resulting notional income. Crucially, the actual rent you receive is not the taxable amount — it is the deemed return on your net wealth that determines your liability.

From January 2028, the Netherlands intends to move to a system based on actual returns — including real rental income and realised capital gains — under the new Box 3 Act, subject to final parliamentary approval. This reform will have significant implications for all property investors. Monitor developments through the Belastingdienst.

Non-residents are taxed only on income specifically sourced in the Netherlands. Non-residents who own Dutch rental property must include it in their Dutch non-resident income tax return, where it falls within the Box 3 rules. Under the current system, actual rent receipts are not directly taxed, but the property’s value feeds into the Box 3 assessment.

There is no national landlord licensing scheme in the Netherlands at the time of writing, though certain municipalities have put in place local registration requirements for short-term holiday lets — Amsterdam’s short-stay permit system being a well-known example. Check with your local gemeente before listing a property on a short-term rental platform. Always verify current rates and reporting obligations with the Belastingdienst.

Are there any tax advantages or incentives for buying property in the Netherlands?

The Netherlands provides several meaningful tax benefits for property owners, the most important of which is the mortgage interest deduction for primary residences.

For a period of up to 30 years, interest paid on a mortgage taken out for the purchase, maintenance, or improvement of a primary residence may be deducted from taxable Box 1 income. One important condition is that the mortgage must include at least an annuity-based repayment structure — interest-only mortgages do not qualify for the deduction. Repayments must be completed within a maximum term of 30 years.

Where a mortgage meets these conditions, the homeowner may deduct the interest paid from their taxable income. Certain costs directly associated with setting up a mortgage — such as notary fees for registering the mortgage deed — may also qualify for deduction.

Mortgage interest is currently deductible against the basic income tax rate of 36.97% in 2024. This deduction rate is being phased down progressively over time — always check the current applicable rate with the Belastingdienst, as it is updated each year.

First-time buyers aged 18 to 35 may qualify for a one-off 0% transfer tax exemption if the purchase price is at or below the statutory threshold — €525,000 in 2025. This exemption can be used only once and must be formally declared at the notary at the time of purchase.

Mortgages that were already in place before 2013 are subject to transitional rules and may be subject to different deductibility conditions. Anyone refinancing or restructuring an older mortgage should discuss the impact on deductibility with a Dutch mortgage adviser before proceeding.

The Netherlands does not operate any property-linked investment visa or golden visa programme offering tax advantages, unlike a number of other EU member states. Tax incentives relating to the restoration of listed or heritage buildings do exist but are administered at the local or heritage authority level — enquire with your municipality for details. Always confirm eligibility criteria and current thresholds with the Belastingdienst.

What are the tax implications for foreign nationals buying property in the Netherlands?

The Netherlands imposes no legal restrictions on foreign nationals purchasing property, and there is no additional transfer tax surcharge based on nationality or country of residence — a contrast to markets such as Singapore or Canada where overseas buyers face significant supplementary levies. Transfer tax rates apply equally to all buyers, determined solely by the intended use of the property rather than the buyer’s passport.

Expatriates living in the Netherlands who qualify as Dutch tax residents are generally required to pay income tax on their worldwide earnings and assets. This means that global property holdings and savings may be included within the Dutch Box 3 assessment for anyone classified as a Dutch tax resident.

Formerly, the partial non-resident regime permitted individuals benefiting from the 30% ruling (the “expat ruling”) to be largely shielded from Box 2 and Box 3 taxes. With the abolition of this partial non-resident status from 1 January 2025 — subject to transitional relief applying until the end of 2026 for those previously entitled to it — all individuals using the 30% ruling will lose their near-complete exemption from taxes on substantial shareholdings (Box 2) and savings and investments (Box 3).

Dutch tax residents are liable for income tax on their worldwide income. Non-residents are taxed only on income with a specific Dutch source. A non-resident who owns Dutch property but is based abroad is assessed on that property through the Dutch non-resident income tax return (buitenlandse belastingplichtigen), with the property included in a non-resident Box 3 calculation.

With more than 100 comprehensive double taxation treaties in force covering income and capital gains, the Netherlands has an extensive treaty network. These agreements may shape how Dutch property income, notional returns, or gains interact with tax obligations in the owner’s country of residence. For example, many treaties allocate taxing rights over immovable property to the country in which the property is situated — the Netherlands — and grant a credit or exemption in the country of residence. The specific interaction, however, depends on the precise terms of each treaty.

Foreign nationals who own property in the Netherlands may also have disclosure or reporting obligations in their home country — for instance, declaring the property as a foreign asset on a domestic wealth or income tax return. It is strongly advisable to consult a tax adviser with expertise in both Dutch taxation and the rules of your country of residence. The Belastingdienst provides guidance for non-resident taxpayers, and the Dutch Association of Civil-Law Notaries (KNB) can assist in identifying a qualified notary.

How do I complete a property purchase in the Netherlands step by step?

Property purchases in the Netherlands are conducted through a civil-law notary (notaris) and follow a structured sequence, beginning with a preliminary agreement and concluding with a formal title transfer. The typical steps are as follows:

1. Find a property and make an offer: Work with a buyer’s agent (aankoopmakelaar) or conduct your own search. A verbally accepted offer does not yet create any legal binding obligation.
2. Sign the preliminary purchase agreement (koopovereenkomst): This is the legally binding contract between buyer and seller. Upon signing, the buyer is required to pay a deposit of 10% of the agreed purchase price to the seller.
3. Three-day cooling-off period: Dutch law grants buyers a statutory cooling-off period of three days from the signing of the preliminary contract, during which they may withdraw from the transaction without incurring any penalty.
4. Arrange financing: Apply for a mortgage. All mortgage lenders in the Netherlands require a formal valuation report (taxatierapport) before approving a loan.
5. Notary prepares the transfer deed: The notary drafts a transfer deed (akte van levering) and a mortgage deed (hypotheekakte) in preparation for the completion appointment.
6. Sign the transfer deed and pay transfer tax: Both buyer and seller sign the deed at the notary’s office. The notary handles collection and payment of transfer tax on the buyer’s behalf. Buyers claiming the 2% or 0% rate must sign a formal declaration of intended use at this stage.
7. Registration at the land registry (Kadaster): The notary registers the completed transfer with the Dutch Land Registry. The property is legally yours from this point.

Frequently asked questions about property taxes in the Netherlands

Do I pay capital gains tax if I sell my Netherlands property as a non-resident?

There is no conventional capital gains tax on the sale of a primary residence in the Netherlands, regardless of where the seller is based. For investment properties, non-residents are subject to Dutch Box 3 tax on the asset value of their Dutch property throughout the ownership period, but no separate exit capital gains tax is triggered at the moment of sale. From 2028, a reformed Box 3 system is expected to tax actual gains on disposal. Always confirm your position with the Belastingdienst and a cross-border tax adviser, particularly if you have concurrent tax obligations in your country of residence.

Can I deduct mortgage interest on rental income in the Netherlands?

For a primary residence, mortgage interest paid on a qualifying loan may be deducted from Box 1 taxable income for up to 30 years. For rental or investment properties held within Box 3, actual rental income is not directly taxed, and mortgage debt is instead subtracted from the gross asset value to arrive at the net Box 3 base — thereby reducing the taxable amount. There is no direct deduction of mortgage interest against rental receipts for Box 3 properties under the current system. Speak to the Belastingdienst or a Dutch tax adviser for advice tailored to your specific circumstances.

Is there a wealth tax on property in the Netherlands?

Dutch Box 3 wealth tax applies to savings and investments where total assets exceed the applicable tax-free allowance — €57,000 for individuals and €114,000 for fiscal partners in 2024 and 2025. A primary residence is excluded from Box 3 and sits instead within Box 1. However, second properties, investment properties, and rental dwellings are all included in Box 3. A rate of 36% applies to the notional return on net assets above the threshold as of 2025. Verify the current figures with the Belastingdienst.

Do non-residents pay Dutch property tax on a holiday home?

Yes. Non-residents who own a holiday home or secondary property in the Netherlands must file a Dutch non-resident income tax return and include the property as a Box 3 asset. Transfer tax at 10.4% applies at the time of purchase (as of 2025). Annual OZB is charged by the local municipality. No additional surcharge applies to non-residents beyond these standard obligations. Check your position in relation to any applicable double taxation treaty with the Belastingdienst.

What is the WOZ value and how does it affect my taxes?

The WOZ value is far more than an administrative reference figure — it has a direct and measurable financial impact on property owners through several different taxes, making it essential to understand and, where appropriate, to challenge. It underpins the calculation of OZB (annual municipal property tax), the eigenwoningforfait (notional income attributed to your primary residence in Box 1), Box 3 asset valuation, and inheritance and gift tax. It is reassessed by your municipality each year on the basis of market values as of 1 January of the preceding year. You may challenge your WOZ assessment within six weeks of receiving the annual notice.

Are there additional costs for buying an apartment in the Netherlands?

Apartment buyers frequently encounter unexpected costs including VvE (Vereniging van Eigenaren — owners’ association) service charges and special levy contributions, and a bank guarantee fee of around 1% of the deposit if the 10% deposit is not paid directly in cash. VvE charges depend on the age, condition, and maintenance requirements of the building and whether the association must build sufficient reserves to satisfy the legally required minimum reserve fund. In cities such as Amsterdam, some properties sit on ground leases (erfpacht), which carry recurring annual canon payments — this should be carefully examined before any commitment to purchase.

Does the Netherlands charge VAT on property purchases?

VAT (BTW) at 21% is applicable to new-build properties in the Netherlands and is generally factored into the developer’s asking price — buyers pay VAT in place of transfer tax on new builds. Transfer tax does not apply to new-build properties because they have not previously been owned or conveyed. For pre-owned properties, transfer tax applies and VAT does not. Always clarify the VAT position with the developer or notary before executing a new-build purchase agreement.

What happens to property taxes if I inherit a Dutch property while living abroad?

Inheritance tax is charged on the heir or beneficiary regardless of where they reside. If the deceased was a Dutch tax resident at the time of death, Dutch inheritance tax (erfbelasting) applies to heirs worldwide. The taxable value of the inherited property is based on the WOZ value at the relevant date. The rate depends on the relationship between the deceased and the heir and the total value of the inheritance received. The Netherlands has concluded more than 100 double taxation treaties, including a small number of estate tax agreements that may prevent double taxation for eligible heirs. Seek advice from a Dutch notary or tax adviser promptly, as inheritance tax returns must be filed within eight months of the date of death.