Dutch real estate offers attractive opportunities for Belgian investors, thanks to the stable economy and political environment, growing population, high demand for housing and favourable tax laws. The main reason to invest in real estate with your company is that you can buy or pay off the property with gross cash, which makes investing in real estate a lot more feasible. In addition, investing via a Belgian limited company offers additional advantages such as advantageous purchases and shielded private assets. However, there are also disadvantages such as more expensive sales and different taxes on rental income.
Advantages of investing in Dutch real estate
The Netherlands offers some clear advantages for Belgian property investors.
A. Like Belgium, a strong economy and stable political environment. This makes the country attractive to investors looking for certainty and stability. You won't find any major price fluctuations or property crises.
B. Growing population and high demand for rental housing: The population of the Netherlands is growing and there is high demand for housing. This means there is a is stable and growing rental market, with higher yields.
C. Favourable tax laws for foreign investors: Belgian investors in the Netherlands can take advantage of more favourable tax laws than in Belgium. This allows them to make tax-optimised investments. Thus, you will save 1.6% registration fee just on purchase.
E. Affordable housing in selected regions: In some regions of the Netherlands, such as Terneuzen, housing is very interesting. For example, an investment of €250,000 through a limited liability company can earn a rental income of €1,250 per month, representing almost 6% return per year.
These advantages make Dutch real estate attractive to foreign investors, especially Belgian investors looking for security, stability and high yields.
Advantages and disadvantages of real estate investment through a BV in the Netherlands as a Belgian investor
Investing in property through a company as a Belgian investor in Dutch property offers some advantages:
- You can buy the property with your gross money. This while using your private assets first at a tax burden between 32 to 55% would sit, depending on how tax-optimised you are. This allows you to invest in real estate faster and loan burdens fall less, as you can repay almost twice as much.
- Beneficial purchase: Costs such as notary fees, registration tax and VAT can be deducted as professional expenses when buying property through a company.
- Beneficial sale of shares of real estate company: Unlike the sale of the property per se, the sale of the company (through shares) that owns the property is tax-free.
- Liability: The company is responsible for handling legal issues and risks, shielding your private assets.
There are also disadvantages to investing in real estate through a company:
- More expensive sale (of property): Sale of property from a company is taxed on the capital gain. However, you can avoid this by reinvesting in real estate each time, thus incurring new costs.
- Taxes on rental income: Rental income is taxed differently for individuals and companies in Belgium. This also applies to rental income from abroad at a Belgian company.
Carefree returns on your Dutch property investment
Interested in investing in Dutch real estate with your company in order to get a lot more return than in Belgium?
With MOMO estates, you get much more than just property abroad. We actively find interesting properties, renovate them and then find the right tenant. Only after we have carefully carried out these steps do we sell the properties to our investors, ensuring you a high-quality property with attractive rental income.
Investing in foreign property is not always easy if you are unfamiliar with the local market. MOMO estates will guide you so that you can enjoy the benefits of foreign property ownership without worries. Contact us here for more information.