Can U.S. citizens get a mortgage and buy a house in the Netherlands?

If you are a U.S. citizen planning to live in the Netherlands, you might be wondering how to buy a home here. Can Americans own property? What do you need to get a mortgage? And how do U.S. tax obligations like FATCA affect your application?

This guide, written by Luc, our mortgage advisor at OHAO, covers everything U.S. citizens need to know about buying property and getting a mortgage in the Netherlands.

Can U.S. citizens own property in the Netherlands?

Yes — U.S. citizens can buy and own property in the Netherlands with full ownership rights. The Dutch government does not restrict foreigners from purchasing real estate, whether it is a home, apartment, or investment property. You do not need Dutch citizenship or permanent residency to own property.

Which documents are required to get a mortgage?

To qualify for a Dutch mortgage, you need to meet a few key requirements. One of the most important is having a BSN (Citizen Service Number), which you receive when you register with your local municipality.

Other documents required to start your mortgage application:

• Valid U.S. passport — proof of identity.

• Valid residence permit — confirms your legal right to live in the Netherlands. As a non-EU citizen, this is required by all mortgage lenders.

• BSN (Citizen Service Number) — required for all financial transactions in the Netherlands.

• Proof of income: employment contract and recent salary slips. If you are self-employed, you need at least 12 months of freelance income history, or 3 years of financial records if you operate through a BV.

• Overview of savings, assets, and outstanding debts — including any U.S.-based student loans or credit card debt.

• Property documents — purchase agreement and valuation report.

Each lender may apply slightly different conditions, so getting personalized mortgage advice ensures your documents meet Dutch banking standards.

FATCA: what U.S. citizens need to know before applying

One of the biggest challenges U.S. citizens face when buying property in the Netherlands is FATCA — the Foreign Account Tax Compliance Act. Under FATCA, Dutch banks are legally required to report account information of U.S. citizens to the IRS through the Dutch tax authorities.

What this means for you in practice:

• Most Dutch banks will ask you to fill out a W-9 form when opening an account or applying for a mortgage.

• Some lenders are more hesitant to work with U.S. citizens because of the additional compliance requirements FATCA creates.

• Not all mortgage lenders accept U.S. citizens — this is why working with an independent mortgage advisor who knows which lenders do is essential.

At OHAO, we work with over 40 lenders and know exactly which ones accept U.S. citizens without complications. This saves you time and avoids rejected applications.

Dual tax filing obligations

Unlike citizens of most other countries, Americans are required to file U.S. tax returns every year — regardless of where they live or earn income. When you buy a home in the Netherlands, this creates several important considerations:

• Mortgage interest deduction works differently in the Netherlands versus the U.S. In the Netherlands, mortgage interest on your primary residence is tax-deductible. However, U.S. tax rules apply their own treatment of foreign housing costs.

• FBAR reporting: if the total value of your foreign financial accounts (including Dutch bank accounts) exceeds $10,000 at any point during the year, you must file a Foreign Bank Account Report (FBAR) with the U.S. Treasury.

• Form 8938: if your foreign financial assets exceed $200,000 (for single filers living abroad), you must also report them on IRS Form 8938.

• Capital gains: the Netherlands generally does not tax capital gains on the sale of a primary residence. However, the U.S. may tax gains exceeding $250,000 (or $500,000 for married couples filing jointly).

We strongly recommend working with a tax advisor who specializes in U.S.-Dutch cross-border tax situations alongside your mortgage advisor.

Mortgage borrowing limits for U.S. Citizens

In the Netherlands, homebuyers can typically borrow up to 100% of a property's market value (Loan-to-Value, or LTV).

However, if your income is paid in U.S. dollars, lenders often apply stricter rules due to currency fluctuation risk. Most Dutch lenders cap borrowing at around 90% LTV when income comes from abroad or is paid in a foreign currency. This means you will likely need more savings to cover the difference and additional purchasing costs.

If your income is earned in the Netherlands and paid in euros — even if you hold U.S. citizenship — you are generally eligible for the standard 100% LTV. To find out how much you can borrow, contact our mortgage advisors.

The Dutch-American Friendship Treaty (DAFT)

If you are a U.S. citizen moving to the Netherlands as a self-employed professional or entrepreneur, you may qualify for a residence permit under the Dutch-American Friendship Treaty (DAFT). This treaty allows Americans to obtain a residence permit by setting up a business and investing at least €4,500.

While DAFT gives you legal residency, securing a mortgage as a DAFT permit holder can be more complex. Lenders may require proof of stable income in the Netherlands, and some require a minimum residency period. Our advisors have experience helping DAFT permit holders navigate the mortgage application process.

Planning to relocate and buy a home instead of renting?

If you are planning a move to the Netherlands, you can begin preparing before you arrive. Our mortgage advisors can assess your borrowing capacity remotely, helping you understand how much you can afford and what documents to prepare.

We can also connect you with trusted real estate agents who specialize in helping expats through the step-by-step home-buying journey across the Netherlands.

Mortgage lenders for U.S. citizens

Not all Dutch banks accept mortgage applications from U.S. citizens due to FATCA compliance requirements. We work with and compare over 40 mortgage lenders across the Netherlands, and we know which ones welcome American applicants.

You can check the current mortgage interest rates on our website or contact our mortgage advisory team for a free, no-obligation call.