De Gevolgen van het Einde van Tijdelijke Huurovereenkomsten
Renting out your house to expats
In some regions of The Netherlands it is very attractive to rent out your house to expats. But how does this work? What do you have to think about? And what do you get out of it? We will answer these questions in this extensive blog post about renting out your house to expats. Most expats live and work in The Hague and Amsterdam. This is because most international companies and organizations are located there. In addition, the Eindhoven region also called Brainport Eindhoven is booming and attractive to many expats. In this region, the university and top technological companies such as Philips and ASML work together excellently. Due to the scarcity of top technical talent in The Netherlands, many high-quality positions there are filled by expats. Also places like Delft and Enschede with both having a technical university in their city now host many expats.
What is an expat?
An expat is very often an employee of a multinational company or an international organization, who works and lives abroad for long periods but temporarily. Expat is an abbreviation of the English word expatriate. It is often in another country with a different culture.
Questions about expatriates
What is an expat worker?
Expat and actually migrant worker are actually synonyms for foreign employee. Often the term knowledge migrant is also used. The knowledge migrant is a highly skilled immigrant from often outside the EU, who come to work in the Netherlands because of their special specialized knowledge. In many cases this is specialist with technical knowledge. But they can also be, for example, actuaries at insurance companies. This is a specialist position that too few people in the Netherlands can fill. An expat nowadays can also be a professional soccer player from abroad, who comes to play soccer here for 1-3 seasons.
How do I become an expat?
Becoming an expat, first of all, is something you have to love. A first step for an international career could be a traineeship with an international organization. It will help you build an international network. This can significantly increase your chances of being sent abroad as an expat. It is also wise to put energy into your language skills. English is obviously self-explanatory, but depending on where you want to go, Spanish or French or perhaps Chinese is also an option.
What does an expat earn?
An expat's salary can vary greatly. It depends, of course, on how much experience you have and whether you are in a profession, in which there is scarcity. Are you a senior or do you belong to middle management? For middle management you should think between 3500 and 5000 Euro. For a senior executive, it can go up to several tons.
Where do Dutch expats live?
Dutch expats are in Belgium, Germany, Spain, The UK, USA, France, Australia and Turkey.
Where do many expats work?
Most expats live in Amsterdam. Think of between 50,000 and 100,000 expats. The Hague is a close second. Around 60,000 expats now work here.
Where do expatriates live?
In The Netherlands, most expatriates live in the Amsterdam region and in The Hague and surrounding areas. This is because of the large amount of multinationals and international organizations. Many expats from the US, China and India come to work and thus live here temporarily for six months or a whole year.
How long can an expat stay in the Netherlands?
An average expat stays approximately between 6 months and three years in the Netherlands. As always, there are exceptions where expatriates stay longer. For example, a stay may be extended. Most expat employment contracts are really no longer than 3 years.
Why bring an expat to the Netherlands?
An expat often has a good job. They usually do not earn more salary than a Dutchman with the same job. However, an expat keeps considerably more money, because of a tax benefit for expats. Also, housing is regularly paid for by the employer. This allows expats to spend more money on living and go for a luxury apartment, for example.
Why do expats come to the Netherlands?
Expats mainly come to the Netherlands for their work. Often the working expat also takes his or her partner and children with them. 1 in 6 expatriates come to the Netherlands to study.
What do expatriates do for work?
Expats are migrant workers who work and live abroad on a temporary basis. Companies often invite highly educated people.
Where are the most expats in the Netherlands?
The region of The Hague and Amsterdam are the most popular among expats in The Netherlands. This stems from the fact, that in these regions most multinationals and international organizations are located. Many expats come from the US, China and India and often come here to work for 6-12 months.
What kind of work do expats do in the Netherlands?
Expats are usually flown in and deployed to the Netherlands because they possess specialized knowledge. These knowledge migrants are always highly educated. They mainly work in sectors such as ICT, industry, technology and startups.
How to rent your property to expats?
Expats housing - 8 tips to improve the rental of your property
- Present your property well
- Use a clear and legally correct contract in Dutch and English
- Always request and require a deposit
- Establish and document whether the rental is inclusive or exclusive
- Furnished or unfurnished is the question? Expats usually go furnished
- Always do a financial check on the prospective tenant.
Expats housing - Why is it lucrative to rent out your property to expats?
Renting out a house to expats can be lucrative. Expats often have a high income. The rent is often also paid by the company where they work. Renting to expats often gives you a high return. They usually have between 1000 and 1750 Euros to spend for a nice house.
Why don't expats pay taxes in the Netherlands?
This is not quite correct. In The Netherlands we have the expat rule also called the 30% rule. This expat arrangement is a tax arrangement for foreign employees who have special expertise, which is hard to get in the Dutch labor market. If this is the case, they pay no payroll tax on 30% of their salary.
How much should an expat earn?
Knowledge migrants or expats must earn at least the following in The Netherlands from now on. The following amounts are gross per month and exclude 8% vacation pay. For knowledge migrants under 30 the following applies: Euro 3,672 (2022: Eur 3,549); For knowledge migrants aged 30 and older the following applies: Euro 5,008 (2022: Euro 4,840).
To benefit from the 30% - scheme, the expat must earn the following for 2023:
- Knowledge migrants over 30 years of age €5,008 excluding vacation allowance
- Knowledge migrants under 30 years of age € 3,672 excluding vacation allowance
- European blue card €5,867 excluding vacation allowance
- Graduates (this includes education at an accredited program at an institution of higher education in the Netherlands or a comparable program at a foreign higher education institution) € 2,631 excluding vacation allowance
(Note the annual indexation). The following conditions are also important: The employee is employed by your company. This person and employee has special expertise (expertise requirement). The employee fully meets the definition of a flown-in and inbound employee.
Why do expatriates earn a lot?
They normally earn the same as a Dutchman in a similar position. However, they keep more income due to the tax benefit. Also, housing is regularly paid for by their employer.
What can rent out an apartment yield?
Renting out an apartment gives you a higher return than money in a savings account. In fact, the average return is 5.7 percent.
Is renting out a house a good investment?
Renting out a house or apartment in an urban area can be a nice additional source of income. Outsource the entire rental process to a professional. That way, the risks are limited.
Is renting out a house always possible?
No, it is not always possible. In The Netherlands there is rent protection. You have rent protection with a fixed rental contract. This means that your landlord may only terminate the rent for a reason stated in Dutch law. For example: nuisance or rent arrears.
Renting out your house legally and privately is only possible through house keeping, probationary cohabitation or by means of the Leegstandswet. This law is only an option if you own a house for sale. This home must be visibly for sale. In addition, you must always obtain a permit from your municipality.
What is house keeping?
It may be applicable, that you cannot occupy your own home for a time. For example, you have to go abroad for work for a few months. It may also be the case that you are unable to use your own home. In certain cases, someone else may be allowed to look after your home.
What exactly does the Vacancy Law regulate?
The vacancy law prevents undesirable vacancy of buildings and housing. Through this law, it is possible to temporarily rent out houses or other buildings, which are intended for sale, demolition or thorough renovation. This is possible for the period from 6 months to max 5 years.
What to do if you want to rent out your property?
- Decide in what way you want to rent out your property.
- Study carefully the rules, which will apply to you.
- If necessary and to be on the safe side, ask your bank for permission.
- Ask your municipality about the rules for renting.
- Put agreements with your tenant on paper.
- Check your current insurance policies for any prohibitions.
Where does an expat pay taxes?
The country where the expat lives levies taxes on the world income and assets of its residents. An expat, who works and lives in another country, also pays taxes in the country where he or currently works. However, The Netherlands has concluded very many treaties to avoid double taxation.
What is an expat broker?
An expat broker is a real estate agent, who helps expats find a temporary home for usually 6 or 12 months when they come to work in The Netherlands. Expat is the term for someone who is temporarily living in another country for his or her work. Usually they are persons, who work at large international companies or organizations. There are between 200,000 and 300,000 expats working in The Netherlands.
What does an expat broker do?
As an expat, you often work for a particular company. This means that your workplace has been arranged for you. This does not automatically mean that your home has also been arranged. An expat broker can help the expat find temporary housing. Sometimes the company where the expat is going to work also hires an expat broker.
Expats who come to The Netherlands to work often want to live near their workplace. They prefer not to have long travel times, so they can fully focus on their work. An expat broker looks for a suitable home for the expat, arranges viewings and contacts with landlords, and handles the contracts and the rest of the paperwork. The expat broker will look closely at your personal situation. The whole picture has to be right. Are there children moving with you? Then there have to be schools and sports clubs nearby, preferably an international school.
Is an expat broker something for you?
An expat broker can save you a lot of time and money. After all, there is a lot involved in a temporary move, especially if you are moving abroad. The expat broker knows the local housing market very well, takes into account your personal wishes and takes a lot of the hassle off your hands. For example, the broker can also help you apply for gas, water and electricity or other specific requirements.
Letting to expats
Do you have plans to rent out your home to expats? Then take note of the following tips to make renting out your home to expats a success:
Well maintained property: Important is the quality, atmosphere and condition of the property, furniture and amenities. They make your property more attractive to rent to expats. Good example encourages the tenant to treat your property with care. If a property and its amenities are well maintained, it ensures that the tenant will treat it with care. So invest a little in the details before the property enters the rental market.
Rent including service charges: It is wise to divide the rental cost into bare rent and service charges. However, expats prefer an all-in rent. They often do not speak the language yet. Then arranging things like gas, water, electricity, internet and a TV subscription can be quite a task.
Comfort: An expat tenant expects comfort and amenities after a hard day's work. Think for example of a good TV, a dishwasher and the opportunity to take a nice bath after the working day. But also a fast wifi connection, and good coffee maker are appreciated. The expat often prefers a modern home in a fresh and neutral style.
Details: It's often in the little things. New towels and sheets, pillows and rugs often make a world of difference. It shows, that this home is hygienic and clean.
Deposit: Request at least 1 month deposit and in case of a neat furnished house 2 months deposit. This allows you to cover any unexpected costs of minor damage to furniture or the kitchen, for example. Next, use inventory lists and put important items in the home in photographs. You can arrange this at the time of the key transfer possibly with a report recording the current state of the property. Make clear agreements with the expat tenant about the length of the rental period. Record these in a rental agreement. Make sure that the conditions are clear. For example, who is responsible for what maintenance, is best recorded.
Furnished or unfurnished: Expats prefer to go for a ready-made house, which is well maintained. This saves a lot of hassle.
Rental agreement when renting out a house or appartment to expats
For the rental agreement, it is important to make clear and transparent arrangements when renting out a house to expats. The rental agreement must be legally sound and watertight. Points of attention are:
1. Arrange the deposit well. Assume at least one month. However, if the property is fully furnished, 2 months is the best option.
2. At the start of the rental period, record the condition of the property in detail and carefully describe the inventory, with photos if necessary. This can prevent a lot of problems and discussion at the end of the rental period.
3. Make very clear agreements with the tenant about the length of the rental period. Do this in Dutch and in English. This will avoid confusion and problems when you subsequently want to move back into the property yourself.
4. Establish which maintenance is for the expat and which is for the landlord.
Finally, some interesting facts about expats
1. There are now more than 200,000 expats in The Netherlands.
2. Most of the expats come from England, USA, India, Germany, Japan and China.
3. Around 30% of expats are women.
4. About 50% stay in the Netherlands for up to 5 years. Most expats are here 6 months to 12 months.
5. The Hague and Amsterdam host the most expats. Utrecht, however, is becoming increasingly popular.
6. Expats, for the most part, are between the ages of 30 and 40 and usually single.
Why do expats choose The Netherlands to settle temporarily?
- Most Dutch people speak English.
- Multicultural society.
- Culture and way of life
- Pleasant living environment
- Facilities, social amenities and the presence of international schools.
- High-quality and high-quality businesses.
- Safety
- Excellent financial arrangements such as, for example, the knowledge migrant scheme and the 30% rule.
In summary: why renting out your home to an expat is a good idea!
Expats leave their country of origin for the work, which they have here. For many, this is a big step, which they take very seriously. Therefore, they have a great work ethic and treat the house, which they rent temporarily, nicely. We can therefore clearly state, that renting out your home to expats offers many advantages for you as a homeowner. Expats provide more security, little risk and usually higher rental income for the landlord or property owner.
