Many expatriates in the Netherlands eventually reach a crossroads. You might already own a home, but you are considering a second house as an investment, a vacation getaway, or a place for your children. However, the Dutch housing market and tax laws are changing rapidly.
Is 2026 the right time to pull the trigger? In this guide, we explore the financial, fiscal, and strategic aspects of buying a second house in the Netherlands.
Understanding the Difference: Family Home vs. Second House
Before diving into the numbers, it is important to distinguish between your primary residence and a second house.
A family home (gezinswoning) is your main residence where you are officially registered. From a tax perspective, this falls under “Box 1,” which offers significant benefits like mortgage interest deduction.
In contrast, a second house is any property you own in addition to your main home. This includes:
- A holiday home in the Dutch countryside.
- An apartment in the city to rent out.
- A property purchased for a child who is studying.
Because a second house is seen as an asset rather than a basic need, the Dutch government treats it very differently regarding taxes and mortgages.
The Financial Reality of a Second House in 2026
If you are planning to finance your purchase, you must prepare for stricter rules compared to your first home.
Mortgage Requirements
When buying a second house, you generally cannot borrow 100% of the property value. Most banks require a “Loan-to-Value” (LTV) of 70% to 80%. Consequently, you will need to bring at least 20% to 30% of your own capital to the table.
Furthermore, mortgage interest rates for investment properties or second homes are typically 0.5% to 1% higher than for primary residences. You should also note that the mortgage interest for a second house is not tax-deductible.
The Transfer Tax Factor
The transfer tax (overdrachtsbelasting) is a major upfront cost. In 2025, the rate for a second house remains at 10.4%. For comparison, if you were buying a primary residence, you would only pay 2%.
Good news for 2026: The government has announced that this rate for second homes will likely drop to 8% in 2026.
Navigating the Box 3 Tax Maze
In the Netherlands, a second house is taxed in Box 3 as part of your “other assets.” This is currently a hot topic because the system is in transition.
The 2025 and 2026 Outlook
Currently, the tax office assumes a “fictional yield” on your property. For 2025, the tax rate is 36% on a calculated return of approximately 5.88%.
However, in 2026, this fictional return is expected to rise to around 7.78%. This means your annual tax bill for owning a second house will likely increase significantly in the short term.
The Big Shift in 2028
By 2028, the Netherlands plans to move to a system based on actual returns. Under these new rules:
- You will be taxed on the actual rent you receive.
- You will be taxed on the actual capital gains (profit) when you sell the house.
- Maintenance costs and mortgage interest for the second house will finally become deductible from your Box 3 income.
Renting Out Your Second House: What You Need to Know
Many expats consider a second house as a “buy-to-let” investment. While the demand for rental housing in cities like Amsterdam, Haarlem, and Utrecht remains high, new regulations have made it more complex.
The Affordable Rent Act (Wet Betaalbare Huur) and the “point system” (woningwaarderingsstelsel) now limit how much rent you can charge for many mid-segment properties. Because of these caps and higher taxes, some investors are currently choosing to sell their properties rather than rent them out.
Before buying, you should check the “leegwaarderatio.” This is a calculation the tax office uses to value rented properties, which can sometimes lower your taxable basis in Box 3.
Strategic Comparison: Should You Buy or Upgrade?
To help you decide, let’s look at the two main strategies for 2025:
| Feature | Primary Family Home | Second House |
| Tax Box | Box 1 | Box 3 |
| Interest Deduction | Yes | No |
| Transfer Tax | 2% (or 0% for starters) | 8% in 2026 |
| Down Payment | Low (can be 0% with NHG) | High (20-30% required) |
| Risk | Lower (lifestyle stability) | Higher (market & regulatory risk) |
When to choose a larger Family Home
If your family is growing or you work from home, upgrading your primary residence is often the most “fiscally friendly” move. You benefit from the lowest interest rates and full tax deductions.
When to choose a Second House
If you have significant savings or high equity in your current home, a second house can be a great way to build long-term wealth. It is also an excellent option if you want a lifestyle retreat or need to secure housing for a family member.
Conclusion: Plan Ahead for Success
Buying a second house in the Netherlands is a major financial step that requires a long-term vision. While the tax burden in Box 3 is currently high, the shift toward taxing actual returns in 2028 and the lower transfer tax in 2026 may offer new opportunities.
Are you unsure how these rules apply to your specific situation as an expat? We highly recommend speaking with a specialized mortgage advisor. They can help you calculate the “return on investment” and ensure your strategy aligns with the latest Dutch regulations.
Want more tips on Dutch real estate? Following our website for the latest updates on mortgages, taxes, and investment opportunities for expats in the Netherlands!
