Many expats moving to the Netherlands carefully plan their budgets to cover rent, utilities, and transportation. However, life in this charming country can come with a few hidden costs that may catch you off guard. From municipal taxes to steep winter energy bills, these expenses can add up quickly if you’re not prepared. In this guide, we’ll break down the often-overlooked costs of living in the Netherlands so you can avoid nasty surprises and budget smarter. Let's dive in!

1. Municipal taxes (€300–€500 per year, depending on location)

Municipal taxes are an inevitable part of living in the Netherlands, and many expats are surprised when they receive the combined annual bill (Gecombineerde aanslag). These taxes contribute to services like waste disposal and water management, which are essential given the country’s geography and focus on sustainability.

What to expect: Local taxes vary depending on where you live and if you live alone, but as a rough guide, you’ll pay between €300 and €500 annually. You’ll receive invoices typically from your municipality (gemeente) and the regional water authority (waterschap).
Good to know: Sometimes these bills apply per household (not per person), so if you’re sharing accommodation, the cost might be divided. You won’t pay property tax (OZB) if you are renting a property, as that is only for the owner of the residence.

Tip: Some municipalities offer low-income residents the chance to apply for municipal tax exemptions. Check with your local gemeente for eligibility.

2. Health insurance (€130–€150 per month, even if you’re rarely sick)

Health insurance is mandatory in the Netherlands, even if you’re covered by private insurance in another country. The Dutch system ensures access to high-quality care, but the costs can add up.

Monthly premiums: The average cost for basic insurance (basisverzekering) is €100–€150 per month. This baseline excludes dental care, specialized treatments, and physiotherapy, which require additional coverage.
Additional costs: Most policies come with an annual deductible (eigen risico) of €385. This means you’ll pay the first €385 of your medical expenses every year before insurance kicks in. Some treatments may also require co-pays or upfront payments.

Tip: Check official websites like government.nl or Healthcare for Internationals to understand how health insurance can work for you as an expat.

3. Rental fees & extra housing costs

Finding housing in the Netherlands can be an expensive and overwhelming process, especially in cities like Amsterdam and Utrecht.

Deposit and agency fees: Be prepared to pay a security deposit of 1–2 months’ rent and, in some cases, additional agency fees (up to one month’s rent) if you work with a housing agent.
Unfurnished surprises: Many rentals in the Netherlands are completely unfurnished—this can mean no lights, flooring, or curtains! You may need to spend a significant amount to make the apartment livable. You might want to check out our blog post about rental red flags where we cover all about what ‘unfurnished’ actually means in the Netherlands!
Internet setup delays: Setting up Wi-Fi and cable TV can take weeks, so don’t expect to get connected right away. Costs for these services are typically €40–€70 per month.

Tip: Websites like Rentbird can help take some of the stress out of the rental search. They send you notifications whenever a rental with your ideal criteria becomes available, so you just have to send a message!

4. Public transport

The Dutch public transportation system is known for its efficiency, but it all adds up.

Train tickets: A round trip between major cities (e.g., Amsterdam to Rotterdam) can cost around €30 without a discount subscription. One way starts from around €19 when booking in advance.
OV-chipkaart: To use buses, trains, and trams, you’ll need this reloadable public transport card (€7.50 upfront).
Bikes still cost money: While biking is the quintessential Dutch way to travel, purchasing a bike can set you back €100–€500, depending on the condition and if you’re buying new or second-hand. Repairs and maintenance (such as fixing a flat tire, costing €20–€40) can add up over time.

Tip: Consider discount transport subscriptions like NS Flex or the weekend free travel plan if you use trains frequently. For bikes, opt for insurance to protect against theft, which is one of the most common crimes in the Netherlands.

5. Banking & international payments

Opening a Dutch bank account is often necessary for daily life, but it can come with unexpected costs for expats.

Monthly fees: Standard Dutch banks (like ING, ABN AMRO, or Rabobank) charge €2–€7 per month for basic accounts. There's no such thing as a 'free' account in the Netherlands.
International fees: Transfers to non-EU countries or receiving payments in non-EUR currencies often involve high conversion rates and fees.
Maestro cards: Many businesses, supermarkets, and restaurants used to only accept Maestro cards, but since Mastercard announced they were phasing out the Maestro card in 2023, more places will likely accept your Visa or Mastercard.

Tip: Wise (formerly TransferWise) and Revolut are great solutions for low-fee international money transfers.

Want to avoid further surprises?

Moving to the Netherlands comes with more than just rent and utilities—these hidden costs can quickly add up if you’re not prepared. But we’re not done yet! There are still more unexpected expenses that expats often overlook, from banking fees to winter energy bills. We can't fit them all in one post, so stay tuned for Part 2, where we’ll cover even more financial surprises and how to budget for them.

In the meantime, if you're tired of unexpected fees and wasted time when looking for your perfect home, why not check out Rentbird? Our AI-powered search bots can help you stay ahead of the competition by sending alerts the second a new rental becomes available. Get real-time updates on new listings that match your criteria, so you never miss out on the perfect home.

Try Rentbird today and find your Dutch dream home today!

Amy Worgan

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