Are you familiar with the concept of a pied-à-terre mortgage? And what exactly does "pied-à-terre" mean? A pied-à-terre mortgage is a loan specifically designed for purchasing a second home or apartment, typically in a different city or country.
This type of mortgage is often used for vacation homes or those who frequently travel for work and need a secondary residence in another location.
What are the reasons for getting a pied-de-terrre?
The most popular reasons for using a pied-à-terre include having a convenient secondary residence for work or leisure purposes, establishing a vacation home in a desirable location, or providing accommodation for family members or children attending school or working in a different city.
A pied-à-terre is a residential property you own but do not live in yourself. Instead, you visit it and use it as a second home. You will not be registered at that address in the municipality's Personal Records Database (BRP).
It is good to know that once you allow your child (for example) to reside in your second home, it ceases to be considered a pied-à-terre. Regardless of whether rent is charged, your child becomes the primary resident and must register with the municipality at that address.
Buying a pied-à-terre from abroad
If you live abroad and plan to visit the Netherlands occasionally, you can purchase a pied-à-terre, which allows you to own a home for extended stays.
You can apply for a mortgage for this property. However, if you're considering renting it out temporarily, a rental mortgage is needed, but it comes with stricter conditions than a pied-à-terre mortgage.
Possible requirements when taking out a mortgage for a pied-a-terre
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Both applicants must have Dutch residency.
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The mortgage is generally possible if you live and work in Europe.
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Income paid in Euros (depending on the bank) .
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The primary applicant needs a minimum gross annual income of €60,000.
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Rental of the property is not allowed.
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Mortgages can be used for holiday/recreational homes.
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The maximum loan is 100% of the property value.
For those with income outside of Europe, options are more limited. Your income must be in euros, and your employer must commit to you returning to the Netherlands within 36 months.
Municipality rules and a pied-a-terre
The rules for pied-à-terre properties in the Netherlands can vary depending on the municipality and local regulations.
In Amsterdam - you cannot use them for holiday rentals or as office space.
In The Hague, only the owner and their immediate family can stay in a pied-à-terre, and formal registrations are not allowed. Each occupant must have at least 12 square meters of usable space, and tourist rentals are prohibited, preserving the property for personal use or family stays.
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