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What can an expat do when this scenario happens?


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?
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.
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Comments (29)
Comment by Alex on Wed, May 10th, 2017 at 10:13 AM
I have a student loan to be paid in the timeline 210-2018. I couldnot pay because, I didnot have earning and my credit history has gone bad due to BKR rating. According to BKR, the credit history will be bad for 5 years, so my question is what will happen after 5 years, as my saving account adding the due amount.The loan has a 3rd party garantie incase I fail to make my payments, so then why its showing up all the due amount to my saving account? Alex
Comment by Arjan Enneman on Tue, Jun 20th, 2017 at 12:12 PM
If you don‘t miss any payments on a loan anymore then after 5 year the bad credit rating will be removed at the BKR. Then you should be able to arrange new loans again. Savings will be used to collect payments for the study loan. Guarantee will only work in case you don‘t have any assets anymore.
Comment by David on Wed, Aug 9th, 2017 at 5:38 AM
Hi i finish my study in netherland and left netherland in 2013. I left a debt the a bank. . My bank account was left in RED. So -2000 euro. Now i have to go to the netherland.. Will the custom stop me at the airport?? .
Comment by Arjan Enneman on Thu, Aug 10th, 2017 at 2:18 PM
Customs are not working on behalf of commercial banks only on behalf of the Dutch authorities. So they won‘t stop you unless you have a tax debt or outstanding fine.
Comment by Sunkissed on Tue, Sep 19th, 2017 at 12:18 AM
Hi In 2011-2013 I was living in Amsterdam and I took out abbonoment for my iPhone 4 (at this time it was the Latest iPhone cost maybe 500 Euro, I also took out abbonoment for iPad 3 also the latest model back then maybe cost 800 Euro.. both on 24 month contracts. I only paid 6 months contract and I left to go on holiday but fell I love and never came back... so I left everything in Amsterdam unpaid... now 4 years later I want to return to Amsterdam for visit, will I be stopped at schiphol airport for unpaid abbonoment bills?
Comment by Arjan Enneman on Tue, Sep 19th, 2017 at 3:06 PM
You will not be stopped at Schiphol for unpaid bills. Only if these bills concern traffic fines, unpaid tax etc. So bills from the Dutch government. Customs will not collect bills from commercial companies.
Comment by Mia English on Sun, Sep 24th, 2017 at 1:37 PM
My house was repossessed in Holland and I left to return to my own country. I have no debt to the government or tax depth.... just the bank as far as I know. Am I right in saying customs will not stop me re-entering the country or does having your house repossessed somehow lead to a debt with the tax department?
Comment by Arjan Enneman on Tue, Sep 26th, 2017 at 1:13 PM
A repossessed house is not a reason for customs to stop you. Customs don‘t act on claims from commercial organisations like banks and insurance companies. In principle there should not be a tax debt either but you may want to check this with the Dutch tax authorities (or check the tax return which you filed in the year of migration).
Comment by Mia english on Tue, Sep 26th, 2017 at 1:52 PM
Do the banks write off the debt after a certain amount of time?
Comment by Arjan Enneman on Tue, Sep 26th, 2017 at 2:05 PM
Banks are not legally required to write off debts after a certain amount of time of non payment. They can keep debts in their books till the end of time...
Comment by Sunkissed on Thu, Oct 5th, 2017 at 11:06 AM
What about a health insurance fine in Amsterdam? Is that collected in Amsterdam schiphol? I only temporarily registered in Amsterdam but never paid health insurance for the period. I never got a fine or anything or letter to make it pay I am just worried it will come up after few years?
Comment by Arjan Enneman on Wed, Nov 1st, 2017 at 4:36 PM
I don‘t believe a health insurance fine is collected in Schiphol.
Comment by Tobi Bennett on Fri, Nov 3rd, 2017 at 5:55 AM
Hello everyone! I have a question of importance. I have lived in a student housing apartment, but I was not able to pay all my rent and the company has sent me letters that year and the next one, but they have stopped in the past year. I did not register to the city council and I would like to return to study there. What would happen if I went back and registered at a city council, will I have 3 years of debt suddenly come back at me? Thank you for your time!
Comment by Rohan on Thu, Nov 9th, 2017 at 10:47 AM
What about taking the mobile subscription and leaving the netherlands without paying installments fully? Will that be consider as criminal offense, can that cause fine as fraud, can that cause problem to aqquire citizenship in another EU country, for example in Denmark, Belgium or in Germany?
Comment by Steve Jones on Thu, Nov 16th, 2017 at 4:07 AM
I have left the Netherlands but still have outstanding debt with an energy company (1.1k euro). The invoice is wrong and in dispute but given I have now emigrated and unable to prove the meter readings/ faulty box, I will not pay the bill. How long will it be before the debt is written off or will they use a global collection agency to chase me (is it even a large enough amount?)? I understand it will not stop me from entering NL again but what about the EU?
Comment by selis on Fri, Feb 9th, 2018 at 8:56 AM
two years ago i left netherlands and i didnt close my monthly subscription in a the incaso bureau kept writing me that this is called a debt i need a VOG (certificate of good conduct) from NL ...will this affect me from taking this certification
Comment by S Dey on Thu, May 3rd, 2018 at 12:05 PM
I have been subscribed to one monthly subscription of I left Netherlands in Novemeber, 2017, after few months of that and moved to another country. I paid every invoices till the time I was there in Netherlands and also paid two months (December 2017 and January 2018) of extra invoices. However, I asked them to stop my subscription, but they kept generating more invoices (Feubruary 2018) which I am not willing to pay. Now they have transferred the case to the debt collecting agency who have asked me to pay 72 Euro. I told them everything and they still want to file a lawsuit against me. Please help me. What can they do to me?
Comment by Jerome on Wed, May 9th, 2018 at 12:51 PM
Hi, I and my wife and three children have been living in the Netherlands since December 2016. We currently have a property on Malta which we are paying via a loan. Do we need to declare this to the tax authorities? when it comes to allowance, does this need to be taken into account when applying for rental allowance, health allowance, etc. Many thanks Jerome
Comment by Julia on Sun, May 13th, 2018 at 4:12 PM
I got a question about health insurance. I was studying in the Netherlands and in my third year I received a letter from CAK that I have to be insured or else they do that automatically and I would have to pay 300. On one website for expats they said I have to contact SVB to tell them that I do not need the insurance because I dont work in the Netherlands and the insurance from my country was sufficient therefore. I never got an answer to my e-mails form SVB so I thought they saw their mistake as no other international student I know ever received this letter or had to pay anything without working in the netherlands. However, my old roomies sent me my mail now and it stated that I have to pay 500 euros now to incasso and CAK for not being insured. Can they sue me now if I dont pay that? Because I informed SVB, I dont see how it should be my fault and it feels like a way of how they want to make money through international students in a very shitty way as they do not provide answers and CAK not even information in english. Did anyone have a similar experience? How do I proceed now?
Comment by Randy on Tue, May 15th, 2018 at 2:08 AM
I have left the Netherlands but I am applying for a VOG, will unpaid debts effect this? I know they are not classed as a crime and i was never arrested, but want to put my mind at ease.
Comment by Jay on Mon, May 21st, 2018 at 12:23 AM
I had a fine for weed planting in my house in Utrecht and I left to come to UK since 2013 and I did not pay the that going to affect my Nederland passport
Comment by Alonso on Sun, Jun 3rd, 2018 at 9:04 PM
I left NL in 2008 and had a very large flexiblelkrediet with ABN AMRO which I initially was unable to pay due to not having income. It ended up with a collection agency and I have since been paying it every month. My BKR rating has not changed although I am paying every month. Also I now have only about 7% of the original debt left. I was wondering if anyone knows if the collection agency will ever change my credit rating. I would imagine that after a while of paying systematically every year the rating should be changed or is this not the case in NL? I also feel as the one that go the shortest end of the stick for being honest. Several of my colleagues had similar or larger credits upon which they simply defaulted and forgot about it and NOTHING happened! (How they sleep at night is a different thing). What I am trying to say is that being financially responsible and paying off your debts doesn’t pay off in NL and the negative credit accompanies you ... is there a way to change this?
Comment by Alonso on Sun, Jun 3rd, 2018 at 10:11 PM
If a collection agency gave me a negative mark at BKR in 2012 does this mean it has now been erased? I got a negative rating and have since been paying the collection agency regulalrly. I have missed a couple of months of payment every now and then but in general pay it off. Is it automatic that the bad rating disappears after five years?
Comment by negcr2 on Wed, Jun 27th, 2018 at 10:24 PM
i lived in Amsterdam for 1 year (2015-2016) going to school there. i had student loan, but after 1 year i left the school and came back to my country without paying back the loan and also without cancelling it. i could not pay it back because i did not have earning. now they contacted me to provide them my current address in order to inform me about the current situation. what can be happened if the tax will not be paid back in the future? does DUO have a 3rd party guarantee in case i am failing in making my payments? thank you.
Comment by AK on Sun, Jul 8th, 2018 at 3:20 PM
I have an unpaid waternet bill and a garbage collection tax bill in Amstelveen. I left NL over a year ago. I am coming back to Amsterdam to visit. Will I get stopped in Schiphol and be forced to pay the full amount?
Comment by Arjan Enneman on Thu, Sep 27th, 2018 at 2:20 PM
Not having paid an amount to a (commercial) company is not a reason to get stopped at Schiphol. This includes payments for phone bills, rent, bank loans, travel subscription, energy bill, etc. I assume the same applies to a waternet or garbage collection bill. If the company however becomes aware that you are in the Netherlands again, which is not easy for commercial organisations, they can start chasing you again to pay the outstanding amount.
Comment by Arjan Enneman on Thu, Sep 27th, 2018 at 2:22 PM
Bad credit rating with BKR normally disappears after 5 years, but missed payments could affect this. You can contact BKR to check your registration status.
Comment by Arjan Enneman on Thu, Sep 27th, 2018 at 2:33 PM
A VOG can be requested for many reasons. In principle should a debt not prevent that you get a VOG.
Comment by Arjan Enneman on Thu, Sep 27th, 2018 at 2:34 PM
The Dutch government does not take back and cancel a Dutch passport.
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