With the Trump administration in full swing, more US citizens are taking advantage of a “friendship” treaty that can award a fast-track visa to people who want to set up a business in the Netherlands.
According to figures from Statistics Netherlands, the number of immigrants from the United States bounced back from 1,200 in 2024 to 2,400 last year. Faced with high rents and competition on the rental market, Expat Mortgages sees some of these Americans quickly decide to buy.
But what are the big challenges – and surprises – of buying a house in the Netherlands? Wouter Hofstee Holtrop, partner at Expat Mortgages, has helped hundreds of entrepreneurs win financing for a home, while senior mortgage consultant Fred van Maanen assists foreigners in employment.
“Americans with high incomes have the choice to do this,” says Wouter. “Under the Dutch American Friendship Treaty, it’s possible for a niche group, higher-earning people, to open a limited company and set up here. In some entrepeneurial cases It’s even possible to get a mortgage with no history at all in the Netherlands. Mortgages can be based on 1120’s and 1040’s alone if a story and financial analysis is strong enough”
There is currently a fast-track process for entrepreneur US citizens who meet the requirements to get a “DAFT” visa after setting up a BV company and investing at least €4,500 into it. They may, says Wouter, be able to employ themselves with the 30% tax break and – if all documents are in order – find a mortgage.
Getting a job
Another route for Americans to settle and find a home in the Netherlands is by getting a job, and this is where Fred can help. You need a job position that can be used to calculate income for mortgage purposes – but it is possible to apply for the mortgage while still serving notice in the United States.
“I just registered a mortgage for someone who left America, is registered living here now and still employed by his US employer, which allows working remotely from the Netherlands,” says Fred. “I see increasing numbers of requests for information.”
It is, however, a secure process. “I’m confident that those people, when they have touched base here, will get access to a mortgage but the preparation process can be long.”
Things to consider
You will need a residence permit, a BSN number and a Dutch bank account. If you are an entrepreneur, says Wouter, the documentation needs to be in order: your recent US balance sheets and profit and loss statement (P&L) need to match tax returns, it needs to be clear what profit has been distributed to personal income and your company history needs to be clear.
“The amount of time we spend to prepare a case so I can send it to the bank takes more time than the approval itself, so preparation is key,” he says. “But we don’t have a positive credit rating here: some clients still come here and think they need to build up credit to get a good interest rate.”
The mortgage rates are also the same for everyone: “An American that comes here, and if he’s eligible for a mortgage, he gets the same rate as the prime minister – which for Americans is unheard of,” says Fred. “There’s just no difference here.”
Entrepreneurial clients with their entity or main income source comes from abroad will however need to put down a larger cash sum: a down payment of 15%. Other foreigners will qualify for the same Dutch allowance of 100% loan to value. For all of them, there is no formal pre-approval process, although Expat Mortgages does offer a “secured bidding plan” insurance and recommends completing its thorough checking process before making an offer.
Surprises
Many Americans are surprised that they can just make an offer – even if it is more than a million euros – without getting a mortgage pre-approved. If you don’t take out the “subject to financing” clause, which Expat Mortgages always recommends, then it is your problem to find the money, or pay a penalty of 10%.
Your level of lending is decided not just on the quality of a particular house, as in most countries, but as a multiple of your income. Similarly, it makes little difference to your mortgage lender how much money you put down.
For most Americans in employment, a 100% mortgage is a huge surprise. “For Americans, this is crazy!” says Fred. The extremely low default rate, and the strict Dutch debt conditions are the reason. “The chance banks will get their money back is close to 100%.”
Bidding is another challenge. “A lot of Americans still think the American system is also applicable here – you see a place for €800,000 and you negotiate the price down,” says Wouter. “At the moment, it’s the opposite. People sometimes put a ridiculous asking price so buyers overbid.”
Another issue is retirement income: only social security payments or a state pension count for mortgage purposes, a key difference with America. “For younger buyers, there are many more possibilities if they are at least below the age of 57,” says Fred. “Then the pension income would not have to be considered.”
It is also a quicker process: if everything is in order, Expat Mortgages can close a mortgage within a few days, with an average of 6.9 days from application to binding offer. The 10-year typical fixed term and relatively low rates are a pleasant surprise too.
Problems
Many Americans assume that if they have bought a house, they can do what they like with it – but under Dutch mortgage conditions, you cannot just rent it out. Many Dutch cities also have rules prohibiting renting out new build properties for the first four years.
If you have a two-year posting abroad, you might be able to apply for a “diplomatic clause” to temporarily rent out your house – but Wouter warns that banks now monitor owner-occupied mortgages. “The net is closing in,” he says. “Twenty years ago, it was a coincidence that a bank would find out, but nowadays it’s much easier to retrieve that information.”
If you do move abroad permanently, you’ll need a buy-to-let mortgage before you go. But with Dutch rent controls, permanent contracts and high property taxes, you’ll need to do the sums carefully to see if it is worthwhile as an investment.
Another issue can be that if you are married, both partners need to be legally responsible for the mortgage in the Netherlands.
Stairs! Wait, what? I have to take this staircase every day?!
Some people coming from Manhattan think a canal house for several million euros is cheap – others feel Dutch prices are really expensive.
And, Fred adds, the downstairs loo is sometimes a shock. “They are also a bit surprised about that, and that it is even at the front door,” he says. “The layout of the house is different.”
Americans and other foreigners also quickly learn that the Dutch word for a staircase is a “trap”, says Wouter. “My in-laws are not Dutch… and they absolutely hate the stairs! Americans are used to bigger plots and they just have way more land.”
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