Residence and company in the Netherlands: €370,000 for a let flat in Düsseldorf
“As a matter of principle we do not finance clients living in the Netherlands.” With this sentence the meeting ended faster than expected. As a non-resident mortgage, this case needed the right bank from the start, not the first one approached.
How was a let flat in Düsseldorf financed for a resident of the Netherlands after two rejections?
Two banks rejected the case solely because of the residence in the Netherlands and the foreign company seat, for which they had no standard process. We selected an institution that regularly finances international entrepreneurs and explained the entire economic background before the credit review. The commitment followed, with part of the equity kept as a liquidity reserve.
The starting position
After months of searching, an entrepreneur from the Netherlands had decided on a high-quality flat in Düsseldorf. The property was in a sought-after location, let long-term, and was to become part of his retirement provision.
Sufficient equity was available.
The company had been writing stable profits for years.
Private liabilities were practically non-existent.
A client, in fact, that any bank ought to want.
But within a few days he received two rejections.
Not because of the property.
Not because of his company.
Not because of his creditworthiness.
But solely because of his residence.
The entrepreneur had run a successful family business in the Netherlands for more than fifteen years. Germany was not an unknown market to him. Many of his clients were in the Rhineland, which is why he regularly travelled to Düsseldorf on business.
By buying the flat he wanted to invest part of his assets outside the company.
The key figures:
Purchase price: 498,000 euros; Equity: 168,000 euros; Financing required: 370,000 euros.
The flat was already let and generated regular rental income.
Why the first banks rejected
The first bank reviewed the enquiry only superficially.
The rejection came after just a few days.
Reason:
Residence outside Germany.
The second bank went a little further.
It requested additional documents about the company.
After a week, however, a rejection followed here too.
This time the internal reasoning was:
foreign company seat; missing standard processes; increased review effort.
For the entrepreneur this was barely comprehensible.
His company had been generating profits for years.
The equity ratio was high.
The property itself represented a low risk.
What many entrepreneurs underestimate
Even economically strong self-employed people regularly find that not every lender takes a cross-border financing.
Not because banks distrust them.
But because international company structures are considerably more involved to review.
Unlike with a German employee, the following often have to be assessed in addition:
annual accounts; company development; shareholder structure; private asset situation; tax particulars; income withdrawals.
Many banks forgo this effort.
Others specialise in it.
That is exactly where the difference lies.
The analysis
Before submitting the documents, the overall economic situation was assessed first.
An exceptionally solid picture emerged.
The company had been generating stable profits for years.
The equity ratio was above average.
Private reserves were available in sufficient amounts.
In addition, the entrepreneur already held several let properties.
The Düsseldorf flat was convincing too.
The location was sustainably lettable.
The rent covered a considerable part of the financing costs.
The decisive change: Instead of enquiring at random with further banks, an institution was deliberately selected that regularly finances international entrepreneurs.
All the particulars were explained even before the actual credit review.
The bank received not only figures.
It received the entire economic background.
Why was the investment made?
How did the company develop?
Which assets were available?
What did the long-term strategy look like?
This produced a complete picture.
The financing commitment
After the economic review, the entrepreneur received the commitment.
The financing was concluded with a long-term fixed-interest period.
Part of the equity was deliberately kept as a liquidity reserve.
The notarial deed followed just a few weeks later.
The flat remained let and became an important part of his private asset planning.
What this case shows: International entrepreneurs often experience the same situation.
The first or second rejection by no means means that financing is impossible.
Often the credit profile simply does not fit the internal policies of the bank enquired at.
Self-employed people living abroad in particular benefit when banks have experience with international company structures.
Entrepreneurs fail on bank guidelines, not creditworthiness: This case shows that international entrepreneurs often do not fail because of their creditworthiness, but because of the lending guidelines of individual banks.
Anyone who selects the right financing partners and documents their economic situation comprehensibly can successfully invest in German property even while living in the Netherlands.
Not every bank finances international entrepreneurs.
The right bank, however, often makes the decisive difference.
Frequently asked questions
Can entrepreneurs living in the Netherlands finance property in Germany?
Yes. Numerous banks handle such financings, provided the economic conditions are right.
Are foreign companies accepted?
Yes. What is decisive is transparency, economic stability and complete company documents.
Are higher equity ratios required?
Depending on the bank the requirements may vary. A solid equity base regularly improves the financing options.
Do the annual accounts have to be translated?
That depends on the respective bank and the documents submitted.
Can further investment properties be financed too?
Yes. Many investors build up their property portfolio step by step. What is decisive is the long-term sustainability of the overall financing.
A similar situation? Let’s talk.
Every case with an overseas link is its own. In a free initial call we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission, as a rule, paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.