Of course it is possible to invest in property in the Netherlands with the aim to rent it out to other people. This will have several consequences:
You can buy property in the Netherlands even if you are not living in the Netherlands. It will be your property and you can rent it out if you wish to individuals and companies. Be advised the renters are protected in the Netherlands. It's not easy to 'get rid of' renters if you don't like them or just don't want them in your property anymore. If you would like to sell your property then you must sell it including rental agreement. This may not be ideal for possible buyers or for a mortgage provider.
All property is transferred by a notary who makes the legal and official changes in the official registrations. This is required by law. If you are not familiar with the Dutch market you can hire a real estate agent who can assist you with the whole procedure of buying a property. See also http://www.nvm.nl/.
You may have to finance the property. In the Netherlands we don't have the same typical buy to let products like in the UK. It is however possible to finance a property you will not use as your own main residence. This can either be done using a Dutch mortgage provider or it may for example be a UK provider. If you need assistance with Dutch finance you can always talk to our mortgage advisor.
Be aware that finance may be difficult. It depends on your income, the downpayment you can make and if you use a limited company the history of this company.
In the Netherlands tax rules are different then they are in other countries.
There are 3 options:
In that case the income is taxed in Box 3 in the Netherlands. A property is always taxed in the Netherlands since it is situated here (based on tax treaty between your country of origin and NL). Since 2001 the real rent and costs are not relevant anymore. Taxable is a fictitious profit of 4% of the average value of the property minus the average finance on the property. Tax rate is 30%. With this costs are not deductible. If a property is sold then the profit is tax free.
Example: Value of the property is € 250,000, mortgage is € 200,000. The equity is then € 50,000. Fictitious profit will then be 4% of € 50,000 is € 2,000 at a tax rate of 30% gives € 600 tax to be paid in that calender year.
This is taxed based on actual income. Real rent is taxed and costs are deductible. Profit made when selling the property is taxed. Tax rate depends on the total income in the Netherlands. This is applicable if you can't speak of normal investment anymore. So it must involve several properties or you must do the maintenance and renovation yourself or you must have special knowledge regarding buying and selling property or you must have totally changed the property and have created many rooms in the property to rent out.
This is the same as above but the difference is that you can also claim some tax benefits for entrepreneurs which will be more beneficial then income out of other activities. There is business income if you show towards the outside world that you have a business. So you advertise etc.
If you only have one property then it will be treated as personal investment, the more you do the earlier it will be seen as business income.