The Netherlands is one of the most stable and attractive countries in Europe for real estate investments. Transparent legislation, developed market, high demand for rentals make this country interesting for both private owners and investors. However, before buying an apartment or house, it is important to understand what taxes you will have to face – both when buying and during further ownership.
The main taxes when buying real estate in the Netherlands
1. Transfer Tax (Overdrachtsbelasting)
This is the main one-time tax when buying a property on the secondary market.
Standard rate: 10.4% of the purchase price (effective January 1, 2023).
For homes purchased for own residence: 2% rate.
For buyers under the age of 35 (first-time buyers of a home up to €510,000): the rate can be 0% (exemption if all conditions are met).
Please note: if you buy a property to rent out, even as a private individual, the 10.4% rate applies.
2. VAT (BTW).
VAT only applies when you buy a new property from a property developer.
Rate: 21% of the value of the property.
In case of purchase with VAT, no transfer tax (Overdrachtsbelasting) is charged.
Annual property taxes
1. Municipal property tax (Onroerendezaakbelasting, OZB)
This tax is paid by all property owners (both natural and legal persons).
It is based on the assessed value of the property (WOZ-waarde), which is determined annually by the municipality.
The rate varies depending on the city, usually from 0.035% to 0.12%.
For example, if the WOZ-value of a house is €400,000, the tax could be between €140 and €480 per year.
2- Waterschapsbelasting – tax on water management
The Netherlands is a country with an active water infrastructure, so there is a special tax:
It is paid by all property owners.
The amount depends on the region and the type of property, but is usually between €100 and €400 per year.
3- Local charges: garbage, sewage, etc.
The property owner also pays a number of local fees that vary by municipality:
Waste disposal (afvalstoffenheffing)
Sewerage fee (rioolheffing)
Charges for public services
Together these can amount to €300-€700 per year.
Taxes on rental property
In the Netherlands, rental income is taxed according to a tax ‘box’:
In most cases, unless you are a professional landlord, the property falls into Box 3 (capital tax).
Income is not directly taxed, but the condition of the assets (including the market value of the property) is taxed.
The effective rate is between 1.2% and 1.71% of net worth (after deducting debts).
Example
Purchase of an apartment in Amsterdam for €450,000 for own residence:
Property transfer tax (2%): €9,000
Municipal tax (approx. 0.1% of WOZ): approx. €450 per year
Garbage and sewerage fees: €500 per year
Waterschapsbelasting: €200 per year
Total annual taxes and fees: about €1,150
Buying property in the Netherlands requires a good understanding of the tax system. The main one-off tax is 2% or 10.4%, depending on the purpose of the purchase. This is followed by annual local and water charges, as well as taxation in the case of renting. To properly evaluate an investment, it is important to consider not only the purchase price but also the long-term fiscal obligations. In case of doubt, it is advisable to consult a local tax advisor or notary.
In the period from January to May 2025, inflation in the Netherlands showed moderate growth, remaining above the eurozone average. According to data from Statistics Netherlands (CBS), consumer prices rose by 3.3% in January compared to the same month last year, down from 4.1% in December 2024.
According to the Indeflatie website, the average inflation rate in the Netherlands for 2025 is 3.7%, which is higher than the 3.35% recorded in 2024.
The main factors contributing to inflation are rising prices for housing, water, and energy, as well as an increase in the cost of services due to rising wages.
However, despite moderate inflation, there are external economic risks that could affect the country’s economic situation.
In particular, a possible escalation of trade relations between the US and the European Union could lead to an increase in inflation in the Netherlands by 0.5 percentage points in 2025 and 2026.
Thus, in the first half of 2025, inflation in the Netherlands will remain moderate, but external economic factors could have a significant impact on further price dynamics.
Source: http://relocation.com.ua/inflation-in-the-netherlands/
The Netherlands Enterprise Agency (RVO) and the De Boomgaard Foundation are investing in the installation of 2,700 solar panels that will generate 1.6 million kWh of electricity annually for 23 Ukrainian hospitals in frontline regions.
According to a press release from the Dutch-Ukrainian charity LifeLine Ukraine, which is supporting the project on the Ukrainian side, the total cost of the project is €3.4 million.
The project is jointly supported by a consortium of partners from the Netherlands (Solarge) and Ukraine (Lifeline Ukraine and Energy Act Ukraine) and provides reliable and sustainable energy supplies to key healthcare facilities and, in the future, to educational institutions in the country.
Solar panels from Solarge have already been installed in two medical facilities in Mykolaiv, with plans to install them in 21 more hospitals.
In addition to solar panels, the hospitals will also receive batteries for storing electricity.
Stichting de Boomgaard intends to ask the EC to build 60 more hospitals along the front line after the completion of these 23 hospitals.
The Netherlands will contribute EUR65m to Ukraine’s Energy Support Fund, the Energy Ministry said after a meeting between Deputy Minister Roman Andarak and Dutch government special representative Erika Scholten.
“This is a significant support for us and it will be an important contribution to the repair campaign that is already underway in preparation for the next heating season. Thanks to these funds, we will be able to partially cover the immediate needs,” Andarak noted.
In her turn, the Dutch representative emphasized that the energy sector would remain one of the main priorities for her country in providing further support to Ukraine.
The parties also discussed the needs of the Ukrainian fuel and energy sector in equipment for the gas production sector, which has recently been subjected to regular Russian attacks. The parties agreed to study in detail the possibilities of cooperation in this area.
According to the Ministry of Energy, since the beginning of the full-scale Russian invasion, Ukraine has received from the Netherlands 211 cargoes of energy equipment weighing almost 3,000 tons, including transformers, generators, a mobile gas power station, cables, fittings for overhead lines and other equipment needed for repair and restoration work.
As reported with reference to Energy Minister German Galushchenko, now the deficit of the Ukrainian Energy Support Fund in applications submitted by Ukrainian energy companies is almost $500m.
The Energy Support Fund was established in April 2022 on the initiative of Energy Minister Herman Galushchenko and Energy Commissioner Kadri Simson.
As of the beginning of March 2025, the announced contributions of partners to the Fund exceeded EUR1 billion. Among its donors are public and private sectors from more than 30 countries, international and regional organizations.
Dutch Prime Minister Dick Schof has announced that the Netherlands will set aside funds to continue supporting Ukraine next year, Western media report.
“The Dutch government will set aside EUR3.5 billion to continue supporting Ukraine in 2026,” Schof said.
According to the prime minister, the funds will ensure the continuity of Amsterdam’s support for Kyiv for the next year, “but if necessary, they can be used this year.”
Schof specified that EUR700 million of the funds would be spent on drones for Ukraine.
Media reports indicate that the previous Dutch government allocated a comparable amount to support Ukraine in 2025, but no exact figures are given.
In addition, in the fall, Amsterdam provided Kyiv with the first batch of the promised F-16 fighter jets.
Economic development forecasts for the Netherlands for 2025 point to moderate growth, driven by domestic demand and investment.
According to the forecasts of the Central Planning Bureau of the Netherlands (CPB), after an expected modest economic growth of 0.6% in 2024, the country’s GDP could increase by 1.6% in 2025.
According to the Central Bank of the Netherlands (DNB), inflation in the country in 2025 is projected at around 3% per year, which is higher than the eurozone average.
In 2025, the Dutch government plans revenues of €425.1 billion and expenditures of €457 billion, which will lead to a budget deficit of about 2.5% of GDP, which is in line with European Union standards.
The Netherlands’ exports, which are a key driver of the economy, are expected to reach €70.5 billion in 2025.
According to forecasts, the growth of housing prices in the Netherlands will slow down from 13% in 2024 to 8-10% in 2025 and 6-8% in 2026.
Economic growth in the Netherlands may be at risk if trade conflicts escalate, especially between the United States and the European Union. The possible imposition of high import duties and retaliatory measures could negatively affect the country’s exports and investments.
In general, the outlook for the Dutch economy in 2025 remains positive, but the country should be prepared for possible external challenges and adapt its policies to the changing global economic situation.
Source: http://relocation.com.ua/forecast-economic-development-neder/
