Why UK landlords invest in Dutch property

The Netherlands is short of hundreds of thousands of homes. Almost every home is let, and there are tenants in every economic cycle. Free-sector rents are indexed every year. Logistics property along the Rotterdam corridor is a further option for yield. It is the same kind of market in which many UK portfolios were first built.

Investing in Dutch property from abroad? Compare buying privately or through a Dutch company, and the transfer tax that applies.

Investing through a BV

Your property BV pays 19% corporate tax on its net rental profit up to €200,000. Net rental profit means the rents minus interest, maintenance and management costs. Within the standard limits, you can deduct the full financing interest. Through a holding company above the BV, you collect the profits and choose when to pay them out. See how a holding works. If you own property privately, you pay box 3 tax at 36% on a deemed return above €59,357 per person. That suits single small properties. For the full comparison, see BV or private.

Buying from the UK

The entity is formed remotely in weeks (how it works). For the purchase, there is power of attorney and notarial escrow, with same-day title registration. A Dutch services team reports quarterly: the services package. Investors who relocate can fold the portfolio into the wider relocate: the Netherlands guide.

Compare the Netherlands with Ireland and Germany on tax, substance, running costs and time. See setting up a Dutch subsidiary for a foreign parent company.

In the Netherlands, a family office has three parts: a holding company, a foundation that issues depositary receipts (STAK) and a foundation for giving. Families organise the decisions in three ways. Read more on a family office in the Netherlands.

What to buy first

With free-sector apartments in the Randstad, you invest in a large and stable market. With a logistics building, you get a higher yield. Check your numbers most carefully for homes in the regulated segment. In that segment, the maximum rent is set by a points system. Professional buyers take these rules into account in their price.