What is buyer costs (kosten koper K.K) and what should you pay attention to?

Use all tips on buyer costs and compare estate agents for your situation

What is costs-to-buyer (k.k.)?

‘k.k.’ is an abbreviation for kosten koper (k.k.). This abbreviation is often found at the back of the asking price of an existing property for sale. There are several costs involved in buyer’s costs, what exactly is it and what do you need to watch out for? The costs may include land registry fees, notary fees or transfer tax. Purchase costs are separate from the purchase price, so these are extra costs and cannot be co-financed with a mortgage.

How much is buyer’s costs?

As a buyer, you want to know what the costs are for buying a house. The buyer’s costs include several costs. These can be the cadastral registration fees, notary fees and transfer tax so it varies per situation. Depending on what the selling party asks of you, your costs will be affected. On average, buyer’s costs (k.k.) are 5% to 6% of the purchase price, should you use the exemption it will be around 3% to 4% over the purchase price.

What falls under buyer’s costs?

When buying a new house, a number of items fall under buyer’s costs. These costs are for the buyer, as the name buyer costs already indicates. Below, you will find a further explanation of the topics covered by these costs. If you are curious about an example calculation, scroll down a bit. So you can estimate for yourself how much it will cost to buy your new home. These are the costs that make buying a new house expensive.

Cadastral registrations

When you buy a house, it must be properly registered in which name a property will be registered. This simply involves changing or registering the owner’s name. The notary can take care of all this and the costs for this are covered by the buyer’s costs.

Notary fees

When buying an existing house, there are (usually) two deeds prepared by the notary, deed of mortgage and deed of transfer. In case you buy the property with a mortgage, you will need a deed of mortgage, a financial obligation between the buyer and the bank. The deed of delivery is the proof of possession in the form of property.

Transfer tax

Transfer tax is also part of the buyer’s costs. It is a tax you pay to the state when you purchase a (holiday) home. This transfer tax is at 2% for 2022. This percentage only applies in case you will live there yourself. For other situations, different rates apply

Purchase situation 2022 Height of transfer tax (%)
Existing house 2%
Shop or business premises 6%
Beleggingen en/of 2e aanschaf (vakantie)woning 8%
Vrijstelling van overdrachtsbelasting 0%
Purchase situation 2023 Height of transfer tax (%)
Existing house 2%
Shop or business premises 6%
Investments and/or 2nd purchase (holiday) home 10,4%
Transfer tax exemption 0%

Average percentage costs-to-buyer

To calculate the average percentage of buyer’s costs, we look at notary fees and transfer tax. The notary fees are based on fixed rates that do not vary much and the transfer tax is 2% of the purchase amount of the property. With these two components, we calculate the average percentage of the buyer’s costs.

Notary fees are therefore part of the buyer’s costs. As described earlier, the notary helps you in any case with the deed of mortgage, deed of transfer and cadastral registration when buying a property.

Notary fees average between €1,000 and €2,000 for the above notarial tasks. So for the notary, the average cost is €1,500.

Transfer tax is also part of the buyer’s costs. The transfer tax has the most influence on the amount of the buyer’s costs because it is 2% of the purchase amount. So it depends on the purchase amount how much this will affect the average cost of ownership.

To give an example, we will assume a purchase amount of €350,000 This amount is approximately the average purchase amount in the Netherlands. Below you can see how the average percentage of buyer’s costs is calculated.

Buyer’s costs (K.K.)
Notary costs € 1.500 (Incl. btw)
Transfer tax (2%) € 7.000  (incl. btw)
Total € 8.500 (incl. btw)

So the average percentage of buyer’s costs if you buy a house of € 350,000 is 2.4%.

Bear in mind that we have used a purchase amount that is considered average in the Netherlands. For example, if you buy a property worth €600,000, your buyer’s costs are already €13,500.

> Read more here if you are looking for a suitable notary in your area

Calculation example of buyer’s costs

Imagine you are buying a house and you have already used the 0% transfer tax scheme once and you are buying a €300,000 house. Then this will roughly be your cost:

Buyer Costs(k.k)
Transfer tax (2%) € 6.000
Notary fees € 1.500
Other costs
Real estate fees € 4.000
Valuation costs € 600
Building inspection € 320
Agency costs € 2.500
Total
Own money € 14.920
Mortgage € 300.000
Total costs € 314.920

> Read more about how brokerage fees are calculated here

Transfer tax exemption

In case you have not taken advantage of this yet, you are allowed to buy a house once without paying transfer tax. This saves considerably on the buyer’s cost as this is the biggest expense anyway. Please note: you must not have used it before, you must be between 18 and 35 years of age and the house must not cost more than € 400,000.

Paying buyer costs in instalments?

Since 2018, it is no longer possible to get more than 100% of the house value in the form of a mortgage. So that means you will have to pay the buyer’s costs (k.k) yourself. This money will therefore come out of your own pocket. Should you not be able to pay this amount, you can always get a donation

Anyone can give you an amount in the form of a donation to pay the purchase price, but usually it will be your parents.  Your parents can donate up to an amount of €28,947 tax-free and abolished on 1 January 2024.. However, there are some conditions you have to meet:

  • You can use it once
  • You have a period of 2 years during which you can use the gift
  • You must be between 18 and 40 years of age

Should you make use of this donation, it is intended that this will be spent on the costs of the purchase, among other things.

Buying a house with additional purchase price (v.o.n.)

As we mentioned above, the asking price of a house is often followed by a notional value (k.k.). It is also possible to see v.o.n., which means “free on name”, which is also common in new-build properties. You don’t pay any:

  • Transfer tax (2%)
  • Notary fees for the deed of conveyance
  • Cadastral registration costs

However, you will also incur buyer’s costs when buying a freehold property, such as notary fees for drawing up the mortgage deed, mediation fees, valuation fees and any estate agent’s fees.

> Read more about the costs of a buying agent

Buying a house without your own money

Buying a house without your own money is very difficult due to the conditions set for the mortgage application. This is because you are not allowed to borrow more than 100% of the value of the house. This does not include additional costs such as buyer’s costs (k.k.). That means you have to pay these costs yourself.

Tax-free gift

If you have not saved enough money yourself to buy a house, it is possible to receive a tax-free donation from a family member, for example. The amount you can receive for a tax-free donation is set at €106,671 in 2022. In 2023, this amount will be reduced to €28,947 and abolished on 1 January 2024.

Taking out a loan

Another alternative to financing a home without your own money is to take out a loan. This loan is based on your salary and is therefore separate from the mortgage which depends on the value of the home. However, this is not always possible and depends on a number of conditions and varies from bank to bank.

> Read more about compare buying agents

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FAQ

Read the most frequently asked questions about all the buyer costs/Kosten Koper (k.k.)

 

 

What are buyer’s fees for first-time buyers?

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As a starter in the housing market, it is possible to bypass the buyer’s costs. You can use the 0% transfer tax scheme once. In that case, however, the purchase value of the house must be under €400,000. You will also have to pay notary fees and cadastral registration costs. You could pay these costs via a tax donation.

What is the meaning of buyer costs (k.k.)?

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Buyer costs includes all costs that have to be paid directly when buying a house. Such as notary fees, cadastral registration fees and transfer tax.

Are there also buyer’s costs for new builds?

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No, there are no buyer’s costs with new builds. This is because you do not pay transfer tax. This is because the property is freehold. However, you do pay for the notary fees (deed of transfer and mortgage) and the land registry entries that are prepared by the notary.

Are the buyer’s costs deductible?

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No, it is not fully tax deductible, however, part of it is deductible. However, you may report the notary and land registry fees for the mortgage deed to the tax authorities as a deduction.

How much is buyer’s costs (k.k.)?

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On average, the buyer’s costs are 5% to 6% of the purchase price. If you make use of the exemption, this will be around 3% to 4% of the purchase price.

Buying a house without any money of your own

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Buying a house without your own savings is unfortunately very difficult due to the conditions set for a mortgage. This is because you are not allowed to borrow more than 100% of the value of the house. This does not include additional costs such as buyer’s costs (k.k.). That means you have to pay these costs yourself.

If you have not saved enough money yourself, it is possible to receive a tax-free gift from a family member, for example. The amount you can receive for a tax-free donation is set at €106,671 in 2022.

Another option for financing a home is to take out a loan. This loan is based on your salary and is therefore separate from the mortgage which depends on the value of the home. However, this is not always possible and depends on a number of conditions and varies by bank.