What is "Vrij op Naam" (v.o.n.)? (2024)

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• What does "vrij op naam" (v.o.n.) mean?
• What costs do you pay as a buyer with "vrij op naam"?
• What is the percentage of "vrij op naam" costs on the sale price?
• Example: Costs of "vrij op naam" for a new build home
• The difference between "vrij op naam" (v.o.n.) and "kosten koper" (k.k.)
• Can you finance "vrij op naam" costs with your mortgage?

What does "vrij op naam" (v.o.n.) mean?

When you buy a house "vrij op naam" (abbreviated as "v.o.n."), all legal costs for the house purchase are already included in the price. This is different from buying a house "kosten koper" (abbreviated as "k.k."), where you, as the buyer, are responsible for paying those legal costs.

Legal costs include VAT or transfer tax, cadastral costs, and the costs of having the deed of transfer drawn up by the notary. If the asking price is listed as "v.o.n.," you do not need to pay these costs as the buyer.

What costs do you pay as a buyer with "vrij op naam"?

If you buy a house "vrij op naam," you might still face the following costs (in addition to paying the purchase price):

• The costs for the mortgage advisor
• Notary fees for the mortgage deed
• Valuation costs
• Costs for applying for the National Mortgage Guarantee (if applicable)
• Costs of the buying agent (if applicable)

For expats, it's essential to understand that the Dutch property market has specific terms and regulations that may differ from your home country. "Vrij op naam" and "kosten koper" are key concepts in Dutch real estate transactions. The biggest difference between these two abbreviations is:

• v.o.n.: seller includes legal costs in the selling price.
• k.k.: buyer covers legal transfer costs seperately.

New build home "vrij op naam"

Newly built homes are always sold "vrij op naam." In this case, the seller pays for the following:

• Costs for the land on which the home is built
• Construction costs, such as materials, labor, architects, and contractors
• Connection of gas, water, and electricity
• 21% VAT on the sale price
• Notary fees for the deed of transfer (delivery deed)
• Municipal taxes
• Any applicable construction interest

These costs are included in the purchase price, so you, as the buyer, ultimately pay them.

Existing property "vrij op naam"

It is also possible to buy an existing property "vrij op naam." In this case, the seller pays for the following:

Transfer tax (2%)
Notary fees for the deed of transfer (delivery deed)

What is the percentage of "vrij op naam" costs on the sale price?

When looking at homes, it helps to estimate what additional costs you might incur quickly. For a property "vrij op naam," you should consider an additional 1.5% for mortgage costs and possibly 1.0% for the buying agent's fee. These percentages are paid on top of the purchase price.

For comparison, if you buy a house "kosten koper," you should expect to pay an additional 4.5% to 6.5% on the purchase price.

Example: costs of "vrij op naam" for a newly built home

With a "vrij op naam" asking price, you still need to account for the following costs:

In this example, as the buyer of a property "vrij op naam," you pay an additional € 6,650 on top of the purchase price of € 365,000. This is approximately 1.8% of the purchase price.

VAT or transfer tax

VAT is applied at a rate of 21% on a new-build home. No VAT is due on existing properties, but a transfer tax of 2% (as of 2023) applies.

• For a new build home "vrij op naam," VAT is already included in the price.
• For an existing property "vrij op naam," the transfer tax is already included in the price.

Notary fees

Notary fees for a property "vrij op naam" are paid by the seller. These fees usually range between €1,000 and €3,000, depending on the complexity of the documents to be prepared. On average, notary fees are €2,000 for the purchase of a property and the mortgage.

Mortgage advisor fees

For a property "vrij op naam," you still need to pay the costs associated with the mortgage yourself. A mortgage advisor costs an average of €2,250.

Valuation costs

An appraiser must prepare a valuation report for the bank for a mortgage. This costs an average of €750, including VAT and all expenses.

Additionally, a mortgage deed must be signed at the notary for a mortgage. You will receive one bill listing the various items. Expect up to €1,000 in extra costs. We have already included these costs under the "Notary Fees" section.

Costs for a buying agent

Hiring a buying agent is not mandatory. It is rarely done for newly built homes. However, it is more common to hire one for existing properties.

If you decide to hire a buying agent, the fee for the real estate agent is approximately 1% of the purchase price (k.k.). For a property priced at €300,000, the buying agent will cost around €3,000.

The Difference Between "Vrij op Naam" (v.o.n.) and "Kosten Koper" (k.k.)

If you buy a property for the asking price "vrij op naam," you only need to pay for your mortgage costs and possibly a buying agent. The transfer tax or VAT and the notary fees are already included in the price.

Can You Finance "Vrij op Naam" Costs with Your Mortgage?

Since 2018, the rules for the maximum mortgage amount have been tightened. You cannot finance more than 100% of the appraised value with your mortgage. In practice, this means the following: if the purchase price of your home is equal to its appraised value, you will need to pay the extra costs (for "vrij op naam") out of pocket. You cannot cover these costs with your mortgage.

If your home is worth more than the purchase price, you can finance the "vrij op naam" costs with your mortgage.

Selling your home while waiting for a newly built home

Buying a newly built home gives you a significant strategic advantage over other home sellers. You have much more time to sell your house, allowing buyers to plan their purchase and their own sale much better.

For this reason, you are more likely to get a higher sale price for your home.

View the performance of real estate agents by city:

Frequently asked questions about "vrij op naam" (v.o.n.)

• What does "v.o.n." (vrij op naam) mean?

  "Vrij op naam" means that all legal costs for the purchase of the house are already included in the price.

• What are the costs with an asking price "v.o.n."?

  The legal costs are the VAT or transfer tax, cadastral costs, and the costs for drawing up the deed of transfer by the notary. If the asking price is listed as "v.o.n.," it means that you, as the buyer, do not have to pay these costs (extra).

• What is the difference between "v.o.n." and "k.k."?

  With an asking price "v.o.n.," the costs for the transfer tax or VAT and the notary fees are already included in the price. With an asking price "k.k.," you need to pay the following in addition to the purchase price:

  • Transfer tax
  • Notary fees
  • Mortgage costs (in case of a mortgage)

• Are "v.o.n." costs tax-deductible?

  Deductions are costs that you can fully deduct from your income tax. Part of the "v.o.n." costs can be deducted from taxes. The following costs are one-time deductible:

  • Mortgage advice
  • Notary fees for the mortgage
  • Valuation report
  • Application for the Nationale Hypotheek Garantie (national mortgage guarantee)

  As a general rule, all costs associated with obtaining a mortgage are deductible. All other costs are not deductible.