Buy to let mortgage in the Netherlands

‍The differences between your own home and a buy-to-let mortgage in the Netherlands

A residential property mortgage is intended for individuals who plan to live in the property themselves, without renting it out. With this type of mortgage, you can finance up to 100% of the market value.

A buy-to-let mortgage, on the other hand, is designed for individuals looking to purchase a property as an investment for rental purposes. By renting out the property, you can generate passive income for yourself and your family. In the Netherlands, financing for such properties typically covers up to 70%, 80%, or even 90% of the market value in a rented state, depending on the lender and specific conditions.

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Requirements of a buy-to-let mortgage in 2023

As a general rule of thumb, a buy-to-let mortgage requires a personal contribution of approximately 30% from your own savings. Additionally, in 2023, a 10.4% transfer tax applies to properties purchased for investment purposes. This makes the costs significantly higher compared to buying a property for personal residence.

Furthermore, to qualify for a buy-to-let mortgage, you must be registered in the Netherlands, live there, and have a source of income within the country. Contact us for more details about your options.

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An example of buy-to-let costs calculation

The numbers below are indications and no rights can be derived from this.

1. Purchase price: € 300.000

2. Transfer tax (10,4% in 2025): € 31.200

3. Appraisal report fee: € 1.200

4. Real estate agent fee: € 5.000

5. Financing costs via us: € 3.995

6. Notary fees: € 1.800

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Total costs: € 40.045

Market value in a rented state: €210.000 (30% less)

(Always much lower than regular market value)

90% financing option: € 210.000 x 90% = € 189.000 mortgage amount

€ 189.000 - € 300.000 (purchase price) = € 111.000

Total savings needed: € 111.000 + € 43.195 = € 154.195

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How does it work and what are the conditions

A buy-to-let mortgage is primarily intended for long-term rentals and is not permitted for short-term rentals, such as holiday homes or Airbnb. Additionally, you cannot live in the rental property yourself, as this has tax implications and removes certain financial benefits.

To apply for a buy-to-let mortgage, we require specific documents to assess your eligibility and explore the available options. Our certified mortgage advisors can guide you through the process and provide expert advice. Contact us to discuss your possibilities.

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Different lenders on the Dutch market

In the Netherlands different lenders have different requirements for investment mortgages. The buy-to-let mortgage market is, however, pretty small in the Netherlands. We have multiple banks/ lenders such as:

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1. Dynamic Credit

2. ABN AMRO Bank NV

3. NIBC

4. Domivest

5. RNHB

6. Woonfonds

7. Nationale-Nederlanden

8. Rabobank

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Box 1 and box 3

Home owners with a mortgage are taxed in box 1, meaning that you are living in the property yourself. Property investment mortgages are taxed in box 3, no interest deductibility is allowed for box 3 financing. 

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Refinance your own property to a buy-to-let mortgage in the Netherlands

For many expats who have purchased a property, keeping it as a rental investment can be a great opportunity when relocating. If, for example, you have lived in the Netherlands for three years and are planning to leave while renting out your property, there are important factors to consider.

Some banks and lenders do not offer buy-to-let mortgage options or may not allow the conversion of a residential mortgage into an investment mortgage. It is essential to check the terms with your current lender. Contact us to explore your options and find the best solution for your situation.

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