Author: Bert van Essen

By Edith van Ruitenbeek

On the 21st of May 2019, the Dutch parliament voted to review the law for spousal alimony, with the aim of limiting the period during which spousal alimony is paid out. According to the majority in Dutch parliament, now that society has changed, the old law is no longer adequate.

The new law limits the duration of spousal alimony to 50% of the total duration of the marriage, with a maximum of five years, with two exceptions. If the marriage lasted more than 15 years, the entitlement to spousal alimony could, under circumstances, last 10 years. And, if there are young children, spousal alimony might, under circumstances, be extended to up to 12 years. Furthermore, there is a hardship clause that will allow judges to extend the duration of the spousal alimony.

An argument that is often heard is that this change reflects the emancipation of women, and the fact that marriage can no longer be considered a life insurance. The statistics do not support this argument, however; in most situations there is hardly enough paying capacity to pay child support and therefore no paying capacity at all to pay spousal support. Taking into account the fact that one out of three marriages breaks down, this means that there already are a lot of divorced women who have to support themselves, even under the old law. The new law will certainly have more of an impact on wealthier couples, though.

Divorce Is a Transfer from Married Life

As a lawyer specialized in family law, I have seen men who did not want to pay their ex-wife spousal alimony – sometimes moving abroad or giving up their job just to try to dodge these obligations. I have also seen women who simply refused to work themselves, although they could have made a living, or secretly living with another partner, all the time denying this – even in court. The children involved, however, are the ones who are traumatized for life.

I therefore, always try to create awareness among my new divorce clients, by making them consider divorce as a transfer from married life to a life after marriage… for both. I also inform them that, according to Dutch law, if one of the spouses is unable to support themselves at the standard they were used to, they are entitled to spousal alimony – provided, of course, the other spouse has the paying capacity to afford spousal alimony.

It should be obvious that if the spouses reached an agreement during their marriage regarding their joint tasks, for instance the care and upbringing children and career options, this should be the basis for a fair agreement regarding spousal alimony once the marriage is over. For my expat clients, the fact that one of the spouses gave up a career to join the other spouse for career options in another country, is often an additional issue. I like to emphasize that issues like these should be kept in mind not only by the spouse who needs this support, but also by the other spouse, especially when children are involved. It can be hard for them to understand why mom is ‘poor’ and dad is not.

Parents who realize that, despite the fact that their marriage is over, they will remain parents forever, generally recognize the common challenge of creating a life after marriage, including a sustainable relationship with the other parent. Spousal support is one of the important issues, sometimes best dealt with by paying a lump sum.

Mediation

To create a liveable life for both after divorce, a mediation approach is to be recommended, as the most important asset of mediation is that the parties themselves reach a solution together. This increases the commitment to, and acceptance of, the solution and therefore the sustainability of the divorce agreement.

Writing down the underlying intentions in a divorce covenant and parenting plan is advisable as well, especially for expat clients. This, as their divorce agreements often face challenges caused by changing circumstances in the future.

Alimony issues in mediation, both spousal alimony and alimony for children, can be a tough nut to crack, though, especially as it is hard to foresee how a court might rule on the divorce, particularly regarding the more wealthy (expat) clients. The new law will certainly not change that. To the contrary.

Should You Adjust Your Marriage Contract?

Taking into account this new law, it is probably advisable to add an alimony paragraph to you prenup or adjusted marriage contract before moving abroad as a married couple, especially if you are Dutch.

Forum Shopping Outside the  Netherlands?

If it is to be expected that one of the spouses will not act reasonably, then – especially when it comes to alimony – it could be a good idea to choose the applicability of the law of a common country, if you have the option of choosing a forum.

One of the most-heard motivations for introducing this new law is that it is meant to foster awareness among (especially) women that marriage is not a life insurance and that they should always aim to support themselves. A curious emancipation tool!

Edith van Ruitenbeek is lawyer and partner at van Hilten Advocaten & Mediators, Nassaulaan 15 Den Haag and De Lairessestraat 129 Amsterdam.

www.vanhilten.nu

In February, DutchNews.nl editor Robin Pascoe became Dutch. Not because she wanted to or because she felt that the time was right. She became Dutch because of Brexit.

I am, immigration department figures show, one of hundreds of British nationals who are taking Dutch nationality in response to Britain’s crazed decision to leave the EU. For me it was a straightforward process. My husband is Dutch and we have been married for 30 years, so I can use the optie regeling – which means I get to keep my British passport as well.

I did not have to go through the process of inburgering – taking exams to show I speak the language and that I know how to apply for a job at Hema. All I would have to do, they said, was fill in a short form, provide a copy of my birth certificate, and pay €187.

I had, of course, lost my birth certificate, so I applied for a new one. Six weeks later it had not arrived and my appointment at the gemeente was coming ever closer. I phoned Britain. An official told me it had been sent by post and should have been with me weeks ago. She did not seem particularly bothered that it had gotten lost along the way and recommended I request a new one, this time delivered by DHL.

DHL delivered my birth certificate super fast… in perfect time for my first appointment with the council to talk about becoming Dutch. I headed off to my appointment convinced I would be there for hours. I was out again, I think, in seven minutes. My appointment was on time but I, alas, had not read the instructions properly and my birth certificate was missing that all important apostille – a stamp to say the birth certificate that Britain had just sent me was in fact the genuine article. Seems slightly over the top, but there you go.

Two weeks later I was back again… this time with that crucial stamp. Again unbelievable speed from the British authorities, but I guess they are dealing with these things round the clock at the moment. And that, basically, was that. I paid the €187 and was told that I would get an invitation to attend a naturalization ceremony within three months.

Sure enough, a few days after I got a letter from the IND telling me that, as a British national, I should do nothing until they tell me what to do about Brexit, I got a letter inviting me to show up at the town hall and become Dutch.

It was not something I was looking forward to. I had heard horror stories about everyone having to sing the national anthem. As an avowed Republican, I decided to cross my fingers so I would not have to swear any allegiance to a king. There was, of course, coffee and tea on offer in true Dutch style when we arrived. We sat, sandwiched between a young African couple with their baby and a group of Dutch youngsters with a friend I took to be French. Then it all began, and how I wished it was already over.

We listened to a brief homily about what being Dutch is all about (equality, freedom of speech) watched a short video about what being Dutch is all about (equality, freedom of speech and lots of canals, windmills and orange) and then it was time.

One by one, the new Dutchies in the room walked to the stage, said ‘dat zweer en beloof ik’ and were given their official certificate of Dutchness and a book about key moments in Amsterdam history. They were then applauded by everyone in the room and had their photo taken in front of a photo of the palace on the Dam.

There was a big pile of books on the table in front of the civil servant in charge of it all. I had seen from the list when we came in that I was third from the bottom. It was going to be a long afternoon.

One by one, the names on the list were called to the stage. There were lots of names I took to be Eastern European, bright young girls and men who raised their right hand and swore in crisp, accented Dutch. There were a couple of women, perhaps from Somalia, who came on stage with their husbands and children, dressed for the occasion in their best clothes, and who posed for the photo in a happy family group.

There were several young women in Islamic headscarves who were obviously born and raised in Amsterdam, judging by their accents. One young man in a suit and bright orange tie hugged and hugged his male partner after making his pledge. The wife from the young African couple in front of us came back from the stage beaming with delight. An elderly Turkish woman – grandma perhaps – who could not get the words out straight and collapsed in giggles after her fifth attempt, posed happily with the rest of the family for the photo to great applause.

It was a never-ending stream of new Dutchies from all over the world. As the pile of books on the stage diminished, I knew my time was getting closer. When my name was called I walked to the stage and made my pledge.

Then it was all over. At the back of the hall there was wijn en fris, plus the classic Dutch staples – herring, bitterballen and cheese. We joined the queue for a bitterbal and a glass of wine and watched as one of the catering workers tried to deal with question about whether the bitterballen were halal or not. He did not know the answer and muttered under his breath.

Group by group, we filed out of the room and went our separate ways. I was left feeling enormously humbled. There was me, loud-mouthed Brit with my cynicism about the whole process, surrounded by people who had gone through so much to get here, who were refugees, or partners who had given up lives in another country and who were just so delighted to become Dutch.

I have not yet applied for a Dutch passport, but my certificate of Dutchness sits in the in-tray in my office. The whole process was, all in all, a lesson in humility. Despite Brexit and all the nonsense that it brings, I realise that I am one of the lucky ones.

Robin Pascoe is editor of www.dutchnews.nl

A Remarkable School Indeed!

During 30 years of RISS, starting as a small department within the Wolfert Bilingual School, we have grown to become a symbol of Rotterdam’s growth, international importance and multicultural awareness.

We serve the expat community that comes to Rotterdam to work and that is seeking quality education for their children. RISS provides an education that not only addresses these academic needs, but also seeks to instil key values and a wider social commitment, all designed to enhance the learning experience of students in line with the expectations of international education. Our values – courage, respect, responsibility and relationships – are embedded in all we do, and serve to support our overall vision which we have proudly declared to be ‘educating for self-awareness, curiosity and integrity in a changing world’. In this way, we fit nicely alongside the wider Wolfert aims of serving a wide range of students with diverse needs, backgrounds and aspirations.

With many recent changes, RISS is now a school that is fully discovering its identity and purpose as a true international school within the Wolfert group, and we are committed to being a high-quality provider of education that is academically successful, value-driven and genuinely internationally-minded. These aspirations were fully ratified by our re-accreditation by CIS and NEASC, two prestigious international accrediting bodies who gave their thumbs up not only to what we do, but also to what we are planning to do.

All with the help, support and reassurance of being part of such a prestigious group as Wolfert.

Enjoying Youth

Where many schools seem to concentrate their efforts on what their children and young people will be, perhaps one of our most powerful public declarations has been our desire for all children and young people to enjoy being what they are now – children and young people. Rather than simply seeing school as one long process of working towards external exams, university and beyond, we work to make sure we are living by our stated mission that all our students ‘enjoy their youth’. It is in their early teens that young people should have the opportunity to more freely explore the world around them, develop and practise the skills they need to best work with other members of the communities they are part of, develop a sense of mission and service to something bigger than they are and, most importantly, learn about themselves through a wide range of opportunities and challenges. This is done via high-quality teaching, involving students as much as possible and letting them be reflective about their learning and aspirations.

This is the new promise we have made to the students who come to RISS and to the families who entrust their children to us each day and it is at the heart of the many developments that have taken place in the last year or two. There has been a great deal of change as a result of a deep rethinking of what we do and how we do it, and we are proud of the progress we have made in all areas of school life. In particular, we have learned, as a school community, that we can and should come together to generate innovation, change and new opportunities – to create a school we are genuinely proud of. This rediscovery of our capacity to collaborate and lead has become the new hallmark for our school.

An Exceptional Example

Currently, the school has a new timetable to helps us deliver both existing and new subjects, and to do so in a way that balances student learning and well-being. We have a new pastoral care programme that ensures our students are looked after both academically and emotionally. We have new leaders of faculties and departments to ensure that our learning is constantly monitored. We are developing a programme of student leadership and action that gives our students more agency in their learning. Our senior campus refurbishment is almost complete, giving our senior years a strong identity that enables them to develop a sense of the new adult they are becoming. Lastly, our renewed energy, focus and drive is captured wonderfully in our new RISS ‘look’, something that can be seen across the school, both inside and out, and demonstrated perfectly on our new website. In this way we feel we have genuinely captured the spirit of who we aspire to be: ‘an exceptional example of an international school’.
Strong and Meaningful Policy

Perhaps one last mention is for our next major project at school, one that will involve stakeholders from every area of school life – teachers, leaders, parents and students. This is to establish a strong and meaningful Teaching and Learning Policy for RISS, one that will define in detail our definition of learning and how we recognise outstanding practice in school. This policy will lead our core educational business when it comes to providing an education for students coming from different corners of the world. Rather than some off-the-shelf document, this important and exciting work in progress serves to underline the special and unique nature of RISS.

RISS is reinventing itself via the opportunities it is creating for all, via a renewed belief in the capacity of its staff to deliver world-class teaching, via its commitment to childhood and youth as an important period of time, in and of itself, and via its constant seeking out of new scenarios with which to enrich the lives of all of those who wish to engage with us and be part of our community.

It is a process that entails bravery, vision, creativity, a willingness to change and a commitment to collaboration. This is something that RISS has embraced fully, and where better for this collaboration to take place than in the wonderful city of Rotterdam?

www.riss.wolfert.nl

A Good Option for Your Child Who Doesn’t Speak (Fluent) Dutch?

By Annebet van Mameren

In the almost six years I have been advising international parents on the most suitable schools for their children in the Netherlands, bilingual schools must have been the topic we have discussed the most frequently.

Many of these parents see this type of school as an ideal in-between solution, somewhere between a Dutch and an international school, which seemingly complements their family dynamics very well.  In this article I’ll try to explain why a bilingual school won’t always be the best option for your child that speaks little Dutch, if any at all.

The Set-Up of Bilingual Education in the Netherlands

But before we reach to this conclusion, it would be good to first investigate this new phenomenon of bilingual education in the Netherlands.

Although the government has acknowledged that in this global world you can give children a head start by teaching them partly in English, they are very worried about a possible decrease in Dutch proficiency. Therefore, in 2014, 19 elementary schools throughout the country were appointed as national bilingual pilot schools, where lessons are taught in another language 30 to 50% of the time – most often English. These schools also have a strong focus on internationalization. For example, pupils at these schools write letters to pen pals across the world, take part in charity projects, and discuss cultural differences. Some of these schools follow the theme-based International Primary Curriculum, which is still pretty unique for Dutch schools.

These 19 bilingual pilot schools are being closely monitored, supported and evaluated by the government. The pilot has been extended once and will now run until 2023.

Some other schools have come up with their own form of teaching some classes in English. As they are not official pilot schools, they are more restricted. Usually they teach in English about 15 to 20% of the time. They have to do without the extra resources and support the ‘official’ bilingual schools receive.

The intermediate results of the pilot schools have been positive. The students of bilingual schools have a greater English vocabulary than children at schools where they start teaching English for 30-60 minutes per week from age 4 (VVTO schools), or where they start with English in group 7 at age 10 (as they do in the majority of schools). The pupils of the bilingual schools can also distinguish better between English words which sound very similar to the non-native ear: for example ‘pen’ and ‘pan’. And, learning English appears not to have a negative effect on performance in Dutch language tests. In some cases, the bilingual students even scored higher in Dutch tests compared to their peers at the other school types.

The Catch

This may all sound very promising, but there are a few things in particular international parents should be aware of.

First of all, it is important to note that the bilingual schools are Dutch schools, where English is offered in addition to the Dutch curriculum. The end test of primary bilingual schools (be it a Cito test or another type of test) is the same as at 100% Dutch schools – fully in Dutch.

A child who doesn’t speak Dutch at home, is largely dependent on the school to learn all the tricks of the trade. Will this child learn enough Dutch while being taught in this language only half of the time? And since the (often not-native) English teachers target their classes to mainly native Dutch children, how well would your native English speaker learn English at school? Won’t he or she get bored during the classes taught in English? How do you make sure they will learn the proper English pronunciation, vocabulary, spelling and grammar? It would be good to ask the principal in advance about how the school deals with these issues.

The situation becomes even more complicated when a child doesn’t speak either Dutch or English at home, as they would then have to study in two foreign languages at the same time. In this case especially, it would be good to ask for some expert advice before making any decision.

Many parents often also don’t realize that before you can enroll at a bilingual school you have to speak Dutch. Usually, these schools can’t accommodate children who are six or older and don’t speak Dutch yet. These children are normally required to follow a one-year Dutch immersion program at a newcomer class first.

Bilingual Secondary Schools

Bilingual secondary schools – the so-called TTO schools – where half of the curriculum is taught in Dutch and the other half (usually) in English, have been around for longer. About 130 schools currently offer this challenging program, most of them at the highest level (VWO), but also more and more at HAVO and VMBO schools. Also here, the exams at the end of the track are completely in Dutch. After the 3rd year, many bilingual secondary schools switch partly or fully back to Dutch, in order to prepare for the exams in the final year. This is the moment where especially the subsidized international secondary schools see a significant increase of applicants for MYP 4.

Subsidized schools are officially meant for families who temporarily live in the Netherlands, and they are often not allowed to take the struggling TTO students who have already been in the country ‘too long’. It is not uncommon for these students to feel stuck. It is good to know, though, that children of Dutch and more permanent international families are allowed to follow the Diploma Years of the IB curriculum at these schools in the final two years.

Although the TTO schools mostly teach in Dutch in the higher classes, they still focus more on internationalization compared to regular schools, and students often graduate from a TTO school with an IB (International Baccalaureate) or Cambridge certificate to prove their high level of English. In addition, the subjects which are not covered by the central exams (e.g., music, gym and social studies) are often still taught in English.

There are definitely a lot of advantages to receiving bilingual education, but whether this is the right choice for you, entirely depends on your family’s situation. Hopefully having read this article you will be better able to make an informed decision. Good luck!

ABOUT THE AUTHOR
Annebet van Mameren is founder of New2nl
www.New2nl.com
annebet@new2nl.com

The Dutch Housing Market

During the Covid pandemic, the housing market experienced a boom. Then, in 2022, due to economic insecurity, inflation and increased interest rates, the price hike slowed down. In 2023, the housing market remained similar to 2022; though it became a bit tighter as there were more people looking for houses than houses being put on the market. Wages were rising and people were looking for freestanding houses or apartments rather than row or corner houses.

Developments 2023

Compared to the second quarter of 2023, prices were up 1.7% in the third quarter of 2023, but down 1.7% compared to the year before. House sales went up 7% for houses whose asking price exceeded € 500,000 and down 6% in the lower-priced market, and the average sales price in the third quarter of 2023 was € 422,000. The average asking price, however, went up from € 500,000 in 2022, to € 544,000 in the third quarter of 2023. Though there were certain regions in the Netherlands where prices went up more than 6%, this was not the case in the bigger cities, where is stayed between 0.5% and 1.6%. In 2023, approximately 45% of houses sold at (an average of 0.2%) more than the asking price – in 2022, 64% sold at 3% more than the asking price. At the start of the year, houses spent an average of 42 days on the market before being sold, but this steadily decreased to 33 days in the third quarter – which was still more than 25 days in 2022.

Finding a House

There is a considerable variety of properties to choose from. The best way to explore the market is by looking at Internet sites such as www.funda.nl (in Amsterdam www.mva.nl), www.jaap.nl, or www.zah.nl.

To Buy or to Rent

Of course, there are a lot of benefits to buying a house. Apart from the fact that you own real estate of which the price may increase, there is the advantage of a tax relief on the mortgage interest – it is tax-deductible if the house is your principal place of residence. In addition, a number of the costs related to the financing of the house are also tax-deductible. These are both issues that this article will come back to, further on.

Although at first sight it might seem an attractive option to buy a house, it is a decision that needs serious and careful consideration. A disadvantage when buying real estate in the Netherlands is that you have to pay approximately 6% of the purchase price as one-time buyers’ expenses. In addition to this, homeowners must add the so-called deemed rental value (eigenwoningforfait – you can read more about this further on) to their taxable income and pay taxes over this.

As a result, the break-even point between rent or buy usually occurs after a few years, assuming that housing prices remain constant. Bearing in mind that expatriates usually stay in the Netherlands for a relatively short period, this is an important issue to keep in mind.

Of course, if you rent a house, you circumvent a lot of the problems and risks, but you also miss out on the possible benefits.

Real Estate Agent

Taking into account your likely lack of knowledge of national laws and regulations, you are advised to enlist the services of a real estate agent when looking for a house. Try to find a real estate agent in the city or town you want to buy in, as issues such as bidding systems, zoning plans (bestemmingsplan), soil contamination and city council regulations are items that are specific to each city.

Real estate agents charge a brokerage fee (courtage) for their services. This is usually between 1 to 2% of the purchase price of the house, though with some realtors the percentage is negotiable. The height of the fee depends the specific services offered; some real estate agencies offer an expat service package.

Basically every agent connected to the largest trade organization NVM has the same information available through the multiple listing system www.funda.nl.

Renting a Property

Different types of rental properties are possible, depending on the landlord:

·         Unfurnished (Ongemeubileerd). Nothing is included.

·         Semi-furnished (Gestoffeerd). Some furnishings and carpeting.

·         Furnished (Gemeubileerd). The apartment is ready to be moved into. Utilities are (usually) included.

The Rental Contract

Many rental contracts have been especially designed to meet the needs of expatriates, and include an English translation. A rental contract usually includes the following items: the rent; a deposit (sometimes one month, often 2-3 months); an annual adjustment of the rent; user’s costs (utilities, municipal levies and garden maintenance); the so-called diplomatic clause (see the following paragraph); the brokerage fee; a clause on minor repairs; a clause regarding the yearly cleaning of the central heating system, water boilers, chimneys, gutters and draining pipes; and the obligation to return the property in the same condition (normal wear and tear excepted).

Diplomatic Clauses in Rental Contracts

Both the lessor and the lessee may ask for a diplomatic clause to be included to ensure that, even though the rental contract may not have expired, the property can be vacated after a notification term mutually agreed upon in advance. For instance, in case the lessor has been posted abroad, but is relocated to the Netherlands, or if the lessee is relocated abroad or to another location in the Netherlands.

Special Treatment Under 30%-Ruling

In principle the full benefit resulting from the fact that your employer is providing you with housing is a taxable benefit. If you benefit from the 30%-ruling, special rules apply. A part of the rent may be qualified as an ‘extraterritorial expense’ (expenses that you incur because you do not live in your home country). That part of the rent can be compensated free of tax (thus reducing the amount of the fixed 30%-allowance!)

If you are a non-resident of the Netherlands, any compensation of double housing expenses is regarded as compensation for extraterritorial expenses: tax-free, but resulting in a reduction of the 30%-allowance.

Buying a Property

Before embarking on the actual process of finding a house to buy, make sure you first contact a bank or mortgage broker to discuss whether you will be able to take out a mortgage here, to what amount you can do this and what the related monthly expenses will be. Having clarified these points will allow you to focus on finding a new home – without being faced with unpleasant surprises just when you think you have found one.

Keep in mind that you will have to make a deposit of approximately 10% of the purchase price – due approximately five weeks after the deal has been made, and arranged by the mortgage advisor or the bank itself by means of a bank guarantee issued by a Dutch banking institution.

Resolutive Conditions Mortgage

If you need to obtain a mortgage to finance the purchase, any purchase agreement should be made subject to financing. If necessary, other resolutive conditions should be part of the agreement, such as (if applicable) being able to obtain a permit to occupy the real estate, or even more importantly, the option of having a constructional survey carried out.

Costs

As a general rule, the costs of purchasing a house in the Netherlands amount to approximately 6% of the price of the house (this is not the same as the 10% down payment!). These expenses include, among others: the appraisal fee (for the mortgage); notary costs, estate agent fees, registration fees, a fee for the structural survey of the house, transfer tax, etc.

Tax-Deductible Costs

The following costs are tax-deductible and can be declared (one-time) on your income tax return: the notary costs for mortgage deed; the mortgage commission fee (paid either to the bank or the broker); the cadastral registration fee; the cadastral investigation fee; the appraisal (taxatie) fee; the administration fee (afsluitprovisie) for the mortgage deed; and the bank guarantee fee.

Mortgage Expenses Deductible

The most important reason to buy real estate – instead of renting it – is most probably the fact that interest paid on a mortgage is deductible when you use the house as your principal place of residence.

In recent years, the government has been re-evaluating its overall mortgage legislation, resulting in a lowering of the maximum rate of deductibility (from 52% to 38% by 2028), but also in the following measures: mortgage interest is deductible over a maximum period of 30 years, provided the mortgage provides for monthly redemption payments (straight line or annuity), and the maximum mortgage amount is 100% of the purchase price of the property. Consequently, the additional expenses related to buying a house can no longer be completely financed by means of the mortgage so that buyers will ultimately have to bear these costs themselves.

What Type of Mortgage?

You should seek proper advice on the type of mortgage that is suitable in your situation, particularly in view of the limited period of time during which you may need the mortgage. Do not forget to inform the bank if you are benefiting from the 30%-ruling. If the mortgage is linked to a capital insurance, you may be faced with additional tax consequences. Be sure to get expert advice!

Deemed Rental Value and WOZ-Value

Those who own a house and use it as their principal place of residence have to report a certain amount – related to the home ownership – on their income tax return. This amount is a percentage of the value of the house, and is called the eigenwoningforfait (or deemed rental value). The eigenwoningforfait based on the official value of the house, also known as the WOZ-value, which is determined every year by the municipality. Every year, the owner receives a so-called WOZ-beschikking (WOZ-decision), ‘confirming’ the value of the house, which is used as a basis for determining a number of levies and taxes and has been created in order to rule out the possibility of arbitrariness.

The general applicable rate of the eigenwoningforfait is 0.75% of the WOZ-value.

The balance of the deemed rental value and the interest can be deducted from your income.

Preliminary Tax Refund

You can receive a tax refund on the mortgage interest deduction every month by requesting a preliminary negative tax bill from the tax authorities. This is done by means of a special form. The tax authorities will then deposit the refund directly into your bank account.

Buying a Property

Before embarking on the actual process of finding a house to buy, make sure you first contact a bank or mortgage broker to discuss whether you will be able to take out a mortgage here, to what amount you can do this and what the related monthly expenses will be. Having clarified these points will allow you to focus on finding a new home – without being faced with unpleasant surprises just when you think you have found one.

Keep in mind that you will have to make a deposit of approximately 10% of the purchase price – due approximately five weeks after the deal has been made, and arranged by the mortgage advisor or the bank itself by means of a bank guarantee issued by a Dutch banking institution.

Resolutive Conditions Mortgage

If you need to obtain a mortgage to finance the purchase, any purchase agreement should be made subject to financing. If necessary, other resolutive conditions should be part of the agreement, such as (if applicable) being able to obtain a permit to occupy the real estate, or even more importantly, the option of having a constructional survey carried out.

Costs

As a general rule, the costs of purchasing a house in the Netherlands amount to approximately 6% of the price of the house (this is not the same as the 10% down payment!). These expenses include, among others: the appraisal fee (for the mortgage); notary costs, estate agent fees, registration fees, a fee for the structural survey of the house, transfer tax, etc.

Tax-Deductible Costs

The following costs are tax-deductible and can be declared (one-time) on your income tax return: the notary costs for mortgage deed; the mortgage commission fee (paid either to the bank or the broker); the cadastral registration fee; the cadastral investigation fee; the appraisal (taxatie) fee; the administration fee (afsluitprovisie) for the mortgage deed; and the bank guarantee fee.

Mortgage Expenses Deductible

The most important reason to buy real estate – instead of renting it – is most probably the fact that interest paid on a mortgage is deductible when you use the house as your principal place of residence.

In recent years, the government has been re-evaluating its overall mortgage legislation, resulting in a lowering of the maximum rate of deductibility (from 52% to 38% by 2028), but also in the following measures: mortgage interest is deductible over a maximum period of 30 years, provided the mortgage provides for monthly redemption payments (straight line or annuity), and the maximum mortgage amount is 100% of the purchase price of the property. Consequently, the additional expenses related to buying a house can no longer be completely financed by means of the mortgage so that buyers will ultimately have to bear these costs themselves.

What Type of Mortgage?

You should seek proper advice on the type of mortgage that is suitable in your situation, particularly in view of the limited period of time during which you may need the mortgage. Do not forget to inform the bank if you are benefiting from the 30%-ruling. If the mortgage is linked to a capital insurance, you may be faced with additional tax consequences. Be sure to get expert advice!

Deemed Rental Value and WOZ-Value

Those who own a house and use it as their principal place of residence have to report a certain amount – related to the home ownership – on their income tax return. This amount is a percentage of the value of the house, and is called the eigenwoningforfait (or deemed rental value). The eigenwoningforfait based on the official value of the house, also known as the WOZ-value, which is determined every year by the municipality. Every year, the owner receives a so-called WOZ-beschikking (WOZ-decision), ‘confirming’ the value of the house, which is used as a basis for determining a number of levies and taxes and has been created in order to rule out the possibility of arbitrariness.

The general applicable rate of the eigenwoningforfait is 0.75% of the WOZ-value.

The balance of the deemed rental value and the interest can be deducted from your income.

Preliminary Tax Refund

You can receive a tax refund on the mortgage interest deduction every month by requesting a preliminary negative tax bill from the tax authorities. This is done by means of a special form. The tax authorities will then deposit the refund directly into your bank account.

This article is based on chapter A Place to Live of The Holland Handbook.