The real estate market in the Netherlands is one of the most lucrative there is, if done properly. There are several reasons for this. The real estate market in the Netherlands is booming at the moment, but it’s also a very profitable market to begin with. If you’re interested in how to start your own real-estate company, read on.
Tax-free real estate trading in the Netherlands
One of the biggest reasons why real estate is such a good business to get into, is because realtors and real-estate brokers can earn large sums tax free. There are some conditions attached so be sure to read this article through before you decide to start your own real estate business.
Do I have to be Dutch to open a real estate business?
No, nationality doesn’t matter: You don’t even need to be Dutch! It’s possible for foreigners living in the Netherlands (including expats and students) as well as foreign companies located outside the Netherlands to start their own real estate business here.
What kind of activities can I engage myself in as a realtor or real-estate broker?
Basically there are three areas where realtors and real-estate brokers get involved: buying and selling homes on behalf of third parties; renting out homes; developing properties for sale or rent. You’ll notice that these areas require very different skillsets. At one end we have developers who can build a house from the ground up. At the other end we have realtors who can sell a finished house in a matter of weeks.
Do I need a real estate license to purchase and sell my own real estate?
In most cases this one is easy because all you’ll really need is registration with the Chamber of Commerce so anyone, even those with no real-estate experience can get started buying and selling their own properties without having any sort of official real estate qualifications or license. This is different when you are selling on behalf of others, as a real estate agent.
If you are buying a property and renting it out again, some municipalities require you to have a permit.
Invest in real estate privately or with a BV
There are pros and cons to both investing in real estate in the Netherlands personally and through a BV, but in general most real estate investors prefer using a BV because it offers more tax advantages. For example, when you invest real estate in the Netherlands through a BV you can write off the interest on your mortgage and any other business expenses, which can save you a lot of money on your taxes. However, there are some risks involved with using a BV so make sure you do your research before making any decisions.
How do you sell real estate in the Netherlands?
There are a few different ways realtors advertise in the Netherlands. One way is to list houses on websites like Funda, which is the most popular real estate website in the Netherlands. Funda also has a B2B versio called Fundainbusiness They’ll also list houses in newspapers and realtor association magazines, and they might also put up flyers or banners in areas where they think there’s potential for real estate deals.
Contracts in the Dutch real estate business
Below are a few contracts that come in handy for real estate businesses on the Dutch market.
A commercial lease agreement is a document that outlines the terms and conditions of a business tenant’s lease. It should include important information like the start and end date of the lease, the amount of rent that’s being charged, any special terms or conditions that are agreed to by both parties, and contact information for both the tenant and the property owner. It’s important to have a commercial lease agreement in place so that both parties know what to expect from the lease and can resolve any disputes that may come up.
What legal entity for my real estate business
To enjoy the benefits of investing in real estate it is usually wisest to do this through a private limited company, or in Dutch a BV company. Real our full guide to understand how to set this up, the costs and the tax advantages this offers. Request a quote to get started.