Mortgages for Employees of International Organizations in the Netherlands

Many people live in the Netherlands but work for international organizations such as EU-based organizations, UNHCR, ICC, or NATO.

Employees of these international organizations are typically not considered residents of any specific country for tax purposes, and their salaries are generally exempt from Dutch income tax.

How does it work, and what are the requirements for organizations employing individuals who work for international organizations?

Example: income from international organizations

Imagine this typical situation: you are employed by a renowned organization such as the United Nations. Your work takes you overseas while your loved ones remain in the Netherlands. Many UN staffers benefit from diverse mortgage opportunities despite being paid in US dollars.

This advantage stems from the organization's provision for currency risk, effectively presenting your earnings as if they were in Euros. Working for an international organization reduces the impact of currency changes and opens up opportunities with a wider range of lenders.

This benefit isn't limited to just one organization; it extends to anyone associated with various global organizations in the Netherlands.

What is taken into account when applying for a mortgage with foreign income?

• Income in foreign currency: lenders assess the income based on the current exchange rate and may consider any currency risk compensation the employer provides.
• Currency risk compensation: many international organizations compensate employees for currency fluctuations. This compensation is factored into the mortgage calculation, effectively stabilizing the income so that it appears as if it is in Euros.
• Tax exemption: salaries from international organizations are often exempt from Dutch income tax. Lenders consider this, which can increase the borrower's net disposable income.
• Employment stability: working for established international organizations such as the ICC, Europol, or OPCW is seen as stable employment. This stability is a positive factor in mortgage evaluations.
• Lender policies: different lenders have varying policies regarding foreign income and tax-exempt salaries. Some lenders specialize in providing mortgages to expatriates and employees of international organizations, offering more favourable terms and broader options.

• Documentation: borrowers must provide specific documentation, including proof of employment, salary statements, and details of any currency risk compensation. These documents help lenders accurately assess the borrower's financial situation.

If you would like more details, please contact our mortgage specialists. Whether you are a first-time buyer needing help understanding Dutch mortgages or working for an international organization, we are here to assist you every step. You can easily schedule a free call via our website here: www.mistermortgage.nl