Development in the Dutch Real Estate market.
Buying a house is never an easy task. Especially not as an Expat in a foreign country. What are the dos and don’ts? What does one need to pay particular attention to? We at ForeXpat are a one-stop-shop with extensive knowledge and experience with any query Expats may have - about insurance issues, about handling the real estate market, about setting up a new business and/or start-up. Then there is our tax consultancy expertise. And all along we like to keep you – our reader – informed about any and all of our and your topics.
Most people only venture into the real estate market when it is time to purchase or rent property. But throughout the ages real estate has also been a money maker through investments. It still is. The recent predicaments have not negatively affected the housing prices in the Netherlands at all. For decades the Dutch tax system has stimulated citizens to purchase a house instead of renting it. This comes in the form of financial subsidy which can be deducted from one’s income tax (also known as ‘hypotheekrenteaftrek’ = mortgage interest deduction).
For decades this has been a sacred cow in the housing market and very few experts have had the courage to suggest its abolishment. But life is a dynamic thing, so change is inevitable. Recently the president of the Nederlandsche Bank – Klaas Knot – uttered the high word and is determined to reform this part of the system. His intention is simple: instead of getting a subsidy as a stimulus for purchase, the net worth of the premises will be taxed. It has yet to become clear how exactly this will be done.
But all in all this market still provides a stable way of investing in spite of the new developments. All changes are tricky – in particular changing country - and that is what ForeXpat is for: unburdening you with all the details when it comes to the real estate, housing, tax compliance, business advice, mortgages, insurances, startup-accountancy in the Netherlands. Call us when you’re ready – we’re here for you.