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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 (12)
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.
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