Expats: buying property versus renting

If you want to come live in the Netherlands as an expat, you can choose to buy a house, but of course you can also rent. Both options have their advantages and disadvantages.

Currently, expats in the Netherlands do choose to buy a house with an average purchase price of €591,000. They stay in the Netherlands for an average of three to five years.

How many expats buy property in the Netherlands every year?

About 1.6% of the homes for sale in 2025 were bought by internationals, including expats. That amounts to about 3,000 to 4,000 homes per year.

The choice to buy a house is made mainly because of building up equity and the enormously high rents demanded in the big cities.

Expats usually choose a house in popular cities such as Amsterdam, Utrecht, The Hague and Eindhoven.

In contrast, renting in the free sector offers more flexibility for shorter and/or uncertain lengths of stay.

But, there are more advantages to consider when buying versus renting. We list them for you below.

Benefits for buying a home as an expat

• Financial: Wealth accumulation through repayment and potential appreciation. With today’s high rents, the monthly cost of an owner-occupied home may be more advantageous.
• Tax advantages: Expats often have a relatively high income. Thanks to the expat rule (formerly the 30% rule), they temporarily pay less tax on their salary. This increases their net disposable income and in many cases they can get a higher mortgage.
• Limited and expensive housing supply: The supply of rental housing for expats is limited, especially in urban areas. At the same time, rental prices are high, making renting often more expensive than buying. For many expats, this makes buying a house more financially attractive.
• Security and stability: A home for sale offers more security than renting. There is less risk of rent increases, temporary contracts or unexpected moves. For expats who expect to stay in the Netherlands for more than three years, buying is often a logical choice.
• Home as an investment: Many expats also see a home as an investment. The Dutch housing market has shown strong price increases in recent years. As a result, expats are often willing to bid above the asking price, which of course increases the chances of a purchase.
• Staying in the Netherlands: Some of the expats want to settle for a long time. They are looking for a home that suits work and home life, for example, with an extra room for a home office or lodgers. This makes buying more attractive than temporary renting.
• Fine location: As an expat, you can buy a house in a location that is easily accessible, for example, close to international schools and public transportation.

Benefits of renting a property as an expat

• Flexible lease terms: The ability to use temporary leases. Which is ideal for short-term expat contracts ranging from a few months to a few years.
• Housing supply: There is a lot of supply of furnished or unfurnished housing which allows you to move in immediately and thus requires little preparation.
• Costs: As a renter, you are less bothered by unexpected additional costs such as maintenance that, of course, you have to pay for yourself with an owner-occupied home.
• Financial security: In many cases, expatriate rent is paid directly by the employer or a housing budget is available.
• Location: Homes often well maintained and are usually located in popular, safe neighborhoods or near international schools and business parks.
• Current housing market: It is difficult to find suitable, affordable housing in the current market.

But in the end, in terms of benefits, it doesn’t matter whether you buy or rent. Because as an expat you always get a tax benefit in the Netherlands called the expat scheme. Below you will find more information about this advantageous arrangement.

Tax scheme for expats

The expat scheme is a Dutch tax facility that allows employers to pay up to 30% of the gross salary of skilled employees recruited from abroad untaxed.

This compensates additional costs for works in the Netherlands, with a maximum duration of five years.

Prerequisites for the expat scheme

To take advantage of the expat scheme, the following conditions, among others, apply:

• The employee is employed by a Dutch employer.
• Specific expertise is involved.
• The employee was classified as an incoming employee.
• The Inland Revenue issued an order for this purpose.

Note! Starting in 2027, the tax-free allowance for expats will be reduced from 30% to 27% of income. This percentage will then apply for the full five-year term.

For 2026, the maximum allowance remains 30%. Employees who started no later than December 2023 can still use the old rule.

Mortgage2Go

As an expat, do you want more information about the mortgage before you start bidding on your first house? And would you then like to be certain right away about what you can borrow maximum for a mortgage, and have the financing pretty much in place before you go house hunting?

Then Mortgage2Go offers the solution. With a pre-checked mortgage, your financing is almost fully secured, and you can be confident that you’ll be able to afford your dream home. Within two business days of your accepted offer, your financing is then complete and definitively approved!

Make an appointment and see if you qualify.