Bosselaar Strengers Legal Partners | Van Campen Liem
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes. Foreigners can own and occupy real estate and can hold shares in property owning companies.
Restrictions: in principle, there are no restrictions. However, a notary is not allowed to execute the deed of transfer, if he/she suspects money laundering, terrorist financing or any other suspicious situation. So in such cases the transfer will not go ahead.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
In principle, there are no such restrictions.
However, financial institutions/banks do have a “black list” including parties that cannot take out a new loan in view of payment arrears in the past.
It is also important to know that financiers are not allowed to lend money, if they suspect money laundering or terrorist financing. These rules were adopted in order to implement European legislation.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
If real estate is conveyed (= transferred), notary fees will be due (including costs for registration in the Land Registry). In addition, depending on the circumstances, transfer tax (2% for residential properties and 6% for other built property) and/or VAT (in the case of new builds and land not built on) must be paid to the tax authorities.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner)?
The owner has to pay real estate tax (called “OZB”). For non-residential properties the OZB is comprised of an owner’s part and an occupier’s part and the occupier’s part can be charged to the tenant/occupier. For residential properties the owner cannot pass on the OZB to the tenant/occupier. Also, an owner who rents out more than fifty residential (social housing) properties must pay a “landlord levy”.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so what are they?
In principle, there are no such tax breaks or incentives. However, in some cases certain costs are tax-deductible. An example of this is the possibility of deducting maintenance costs incurred to preserve a monument for tax purposes.
How is the ownership of Real Estate evidenced in your jurisdiction?
The ownership of real estate is evidenced by registration at the cadastre. This is a public register of titles.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No. Ownership of individuals and companies registered in the Netherlands is publicly available.