Knowledge Base


Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.


What can an expat do when this scenario happens?


Scenario:

I have a house with a mortgage that costed (€ 204,000 - paying the capital and interest). I have only lived in the Netherlands for 3 years and have a debt worth 20,000. My gross annual income is € 38,000 and I have the 30% ruling.

In case I am made redundant and choose to take the lumpsum redundancy payment and want to return to my country of origin, what happens if the compensation is not enough to pay the debts and other costs? What is the best way to solve this problem?
 
Answer:
 
The debts will not disappear if you decide to leave the Netherlands. It may be good to inform the organisations you owe money to about your plans and a possible solution for your problem. If the bank agrees you can continue to pay the mortgage and rent out the property and this way make some profit. You can then decide to sell the property if the market is better.
 
If you leave the Netherlands and stop paying the mortgage the bank will in the end sell the house, which is normally against a lower price than what would be paid on the commercial market. Any remaining part of the mortgage will be transferred to a normal debt which the bank will try to get back from you, even with the assistance of foreign partners.
 
Not paying the debt can make it difficult to come back to the Netherlands again and may also affect the options other expats have to arrange a mortgage or loan in the future. Customs won‘t stop you at the airport if you have debts, unless you have debts with the tax authorities.
 
Attached Files
There are no attachments for this article.
Comments
There are no comments for this article. Be the first to post a comment.
Name
Email
Security Code Security Code
Related Articles RSS Feed
What is a repayment mortgage?
Viewed 2242 times since Thu, Dec 8, 2011
Which type of mortgage can I choose?
Viewed 2516 times since Thu, Dec 8, 2011
I have left the Netherlands and rented out my Dutch house. Now the mortgage provider is creating problems.
Viewed 12598 times since Sat, Nov 26, 2011
New mortgage rules in 2014 - tax and legal consequences
Viewed 9629 times since Thu, Jan 9, 2014
How is the provisional refund calculated when partners bought a house together?
Viewed 13702 times since Mon, Nov 28, 2011
What is a non-repayment mortgage?
Viewed 2272 times since Thu, Dec 8, 2011
Selling house before 10 years fixed
Viewed 2286 times since Fri, Nov 1, 2013
Unhappy with mortgage - can I change it from interest only to repayment?
Viewed 7387 times since Thu, Nov 7, 2013
What is a mortgage with repayment at the end of the term?
Viewed 2221 times since Thu, Dec 8, 2011
Euro mortgage
Viewed 1259 times since Fri, Aug 30, 2013
MENU