What Are Buyer’s Costs?
The “kosten koper” (buyer’s costs), often abbreviated as k.k., refer to the additional costs incurred when purchasing an existing home. These expenses are paid by the buyer on top of the purchase price. Officially, the buyer’s costs include transfer tax and notary fees, but other associated expenses are often included. Below are the main components of the buyer’s costs.
Transfer tax
What is transfer tax?
Transfer tax is a tax paid when acquiring real estate, such as homes, commercial properties, land, or other property. This also applies to acquiring rights related to real estate, such as leasehold or shares in a real estate company.
Rates
-
2%: For homes you will live in yourself.
-
10.4%: For holiday homes, commercial properties, land, and other non-residential properties.
Exemption for first-time buyers
Are you between 18 and 35 years old and purchasing a home for long-term residence? If the property price does not exceed €510,000 and you haven’t used this exemption before, you may qualify for the first-time buyer exemption, meaning you won’t pay transfer tax. This exemption applies only to residential properties intended for living, not for holiday homes, commercial properties, vacant land, or buildings to be demolished.
How is transfer tax paid?
In most cases, the notary arranges the payment. If not, you must file a tax return and pay it yourself. Be sure to check if you qualify for an exemption or reduced rate.
For more details about transfer tax, visit the tax administration website.
Other additional costs
Land registry fees
Costs are incurred for registering the deeds with the Land Registry, which records property ownership. These costs usually form part of the notary’s fees.
Valuation costs
For a mortgage application, you must obtain a valuation report from a certified appraiser. This report, which determines the property’s value as collateral for the mortgage, costs an average of € 500.
Real estate agent fees
If you hire a buying agent, you’ll typically pay a fee based on a percentage of the purchase price (e.g., 1%) or a fixed amount. These fees vary by agent and are often negotiable.
Mortgage advice and brokerage fees
Arranging your mortgage involves advice and brokerage fees, usually between € 1.500 and € 3.500, covering consultation and administrative processing.
Structural survey
For an existing home, it’s wise to conduct a structural survey to identify potential defects and maintenance costs. This survey typically costs around € 350.
Bank guarantee
If you cannot pay 10% of the purchase price as a deposit, you can arrange a bank guarantee at an average cost of 1% of the guaranteed amount.
Total buyer’s costs
De kosten koper bedragen gemiddeld 4-6% van de woningwaarde. Bij een woning van € 400.000 kun je dus rekenen op
€ 16.000 tot € 24.000 aan extra kosten. Houd hier rekening mee bij het plannen van je budget, omdat deze kosten uit je eigen vermogen komen.
