What are the key requirements for starting a real estate agency business in the Netherlands? Do Dutch real estate companies need licenses to operate legitimately? If yes, where and how can they obtain these licenses?
In this article, we shall answer all your questions as it regards running a Dutch estate agency. But before then, let’s look at the top reasons why the Netherlands is a good place for real estate investment.
Why is the Netherlands a Good Place for Real Estate Investment?
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If you are considering having an European footprint, the Netherlands is a great country to start with. The presence of superior infrastructure, tax benefits, stable political and climate environment and a highly educated multilingual workforce are some of the reasons why we advise that you should invest in the Netherlands.
The real estate market in the Netherlands has been very stable until the outbreak of the pandemic in 2020 when the inflation-adjusted rose by 7.4% nationally. In Amsterdam, the capital, the price of existing homes rose by 5.3% in 2020.
This unusual increase in the prices of office spaces and residential sites are not unconnected to the increase in demand in the Netherlands, especially the capital, Amsterdam.
Before you can legally run your real estate agency business in the Netherlands, you will need to follow the procedure for registering a new Dutch company. You will need to obtain specific business permits before you can be allowed to run your business. You may need to hire the services of a business consultant in the Netherlands to help you incorporate it.
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Now, let’s look at some of the laws governing the real estate agency market in the Netherlands.
Legislation on the Real Estate Market in the Netherlands
There are specific rules of law guiding the activities of the real estate industry in the Netherlands. If you intend creating a real estate agency business in Amsterdam, then be ready to abide by these following rules:
- Housing Act: The Netherland Housing Act was adopted in 1991-08-29. On 1 July 2015 the revised Dutch Housing Act came into force and this involves the Dutch Public Housing (Approved Organisations) Decree (BTIV) and the ministerial regulation.
- Building Decree (describing the technical requirements for operating on new and existing real estate projects).
Business Permits in the Netherlands
If you are considering investing in the Netherlands, the first step is to obtain special permits for that. And if you intend going into construction projects, you will need to obtain a building permit.
Several construction projects are exempted from obtaining a building permit but, as a general rule, it is necessary to receive one of the following permits:
- Light permit (for minor construction projects)
- Regular permit (for general construction projects)
To fully incorporate your real estate agency business in the Netherlands, you may need to hire the services of a company registrations agent. Their role is to help you gather the necessary documents that will make it easy for your permits to be approved.
As we speak, the demand for office spaces in the Netherlands is estimated at 550,000 square meters, while by 2025, the local authorities announced that the urbanization project will provide new 5,000 units for residential purposes.
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How Much Does It Cost to Register a Company in the Netherlands?
Your principal place of business a.k.a your company’s office address is what determines the district where you will register your real estate agency business in the Netherlands. Registration must occur within eight days of the incorporation procedure of the company. The process itself requires a single fee payment, usually of 50 Euros.