Buyer's Costs: What Costs Are Involved in a Purchase?

If a home is listed for sale with “costs payable by the buyer,” you, as the buyer, are responsible for the costs associated with the transfer of ownership. These include the transfer tax, the notary’s fee for the deed of conveyance, and the costs of registration with the Land Registry. With new-construction homes, you’ll often see “free of charges,” meaning the seller covers those costs.

This distinction is important when comparing homes. In practice, an “as-is” asking price is five to six percent lower than a comparable “clear title” price, even though the final cost ends up being the same.

The transfer tax is 2 percent for those who will live in the home themselves. If you’re buying as an investor, a significantly higher rate applies. First-time homebuyers up to age 35 may qualify for a one-time exemption under certain conditions, provided the home’s value remains below the applicable threshold.

In addition, you’ll pay notary fees for the deed of conveyance and, if you’re taking out a mortgage, for the mortgage deed. Add to that the appraisal fees and the advisory and brokerage fees charged by your mortgage advisor. For an average home in The Hague, the total can easily come to between 8,000 and 12,000 euros, not including the purchase price.

A structural inspection, your real estate agent’s fee, and the cost of buying out the ground lease (if applicable) aren’t included in the standard list but are real expenses. The first few months after taking possession also cost money: moving, flooring, curtains, and often a fresh coat of paint.

Also, be sure to account for any overlap in housing costs if the closing dates do not align perfectly. We recommend setting aside a buffer of a few thousand euros in addition to the amount you need for the purchase itself.

The costs directly related to taking out a mortgage are deductible for income tax purposes in the year of purchase. These include advisory fees, notary fees for the mortgage deed, appraisal fees for the financing, and any costs associated with a National Mortgage Guarantee.

The costs associated with purchasing the home itself are not deductible. Transfer tax, the deed of conveyance, and your real estate agent’s fee are not deductible. Keep all receipts and consult with your advisor about what you can claim on your tax return; in the first year, this often results in a larger savings than people expect.