Buying or selling recreational property on Texel

Are you dreaming of a second home on Texel? Or looking for a smart investment? From wide beaches to rugged dunes, Texel attracts many Dutch and German visitors every year. No wonder a holiday home on Texel is such an appealing choice. There are plenty of options – for personal use, for rental, or a combination of both. Considering buying a recreational property on Texel? As true islanders with extensive experience in recreational real estate, we’ll be happy to advise you.

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Holiday home by the sea

For enthusiasts, it’s a no-brainer: if you’re buying a second home, it has to be Texel! Still exploring your options? Then make sure to put our island high on your list. Texel offers a few unique advantages. The island is easy to reach: you can bring your car, and the ferry crossing takes just twenty minutes. Texel is popular year-round, so you benefit from a consistently high occupancy rate. In addition, recreational property is scarce, as permanent residency is not allowed. This makes holiday homes on Texel a stable and attractive long-term investment.

Return on investment of a holiday home

Many buyers choose Texel because of its stable return on investment. Demand remains strong, both during peak season and beyond, which is favorable for rental income. The final outcome, however, depends on various factors. A holiday home also requires investment in maintenance, insurance, and management. Is your rental handled through a holiday park on Texel? That offers convenience, but you should factor in an owners’ association fee or park commission.

We’d be happy to walk you through what to expect. This gives you a clear view in advance of the benefits and possibilities.

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Financing & tax matters

Financing a holiday home works a little differently than with a regular home. Banks usually finance 70% of the market value and charge a higher interest rate. Mortgage interest is not tax-deductible, so you pay both interest and principal yourself. However, the debt does count in box 3, which can lower your taxable assets. That’s why many buyers choose to finance with their own funds or by using the equity in their current home (second mortgage).

Tax considerations also come into play. A holiday home falls under box 3 and is treated as an asset. If you rent it out commercially and charge VAT to guests, you may, under certain conditions, reclaim VAT on the purchase, furnishing, and operation. However, there are requirements: you must generate a certain level of income and rent it out short-term. The best option for you depends on your goals and how you intend to use the holiday home.

Checklist:
What should you pay attention to?

Purpose of purchase: personal use, rental, or both
Park rules and annual costs
Condition of the property
Zoning plan and local regulations
Financial and tax impact (Box 3, VAT, loan)

Legal aspects & zoning plan

On Texel, holiday homes are intended for recreational use. Permanent residence is not allowed. Is the property located in one of Texel’s holiday parks? They apply their own rules and specific rental conditions. In addition, tourist tax or registration requirements for short-term rentals may apply.

Holiday parks on Texel

Texel offers a wide range of recreational properties in holiday parks. Not only are the homes varied; each park has its own character, ranging from green and small-scale to spacious with many on-site facilities.

Frequently asked questions

How does Box 3 work?

A holiday home falls under box 3. Any debts in box 3, such as the mortgage, reduce your taxable assets.

Can I reclaim VAT?

Yes, if you rent it out commercially and meet the conditions set by the Dutch Tax and Customs Administration.

Can I finance the property?

Yes, that’s possible using personal funds, home equity, or an investment mortgage. However, banks apply different (stricter) conditions than they do for regular residential properties.

Can I take out a mortgage on the second home?

It is possible, but there are several things to keep in mind. Banks lend less than they would for a regular home—typically up to 70%. The requirements are often stricter, and interest rates are usually higher due to the increased risk for the bank. Mortgage interest on a second home is not tax-deductible, so you'll have to cover all interest and repayment costs yourself. One advantage: the mortgage debt is also counted in box 3, which reduces your taxable assets. This can be beneficial if you would otherwise have a large amount of savings in box 3.

Am I allowed to live there permanently?

No, holiday homes on Texel are strictly for recreational use only.

Recreational property

Are you considering buying a holiday home on Texel?

Makelaardij Texel Vastgoed has years of experience in the sale and purchase of holiday homes. We know the market inside out and can therefore offer you expert advice. Looking for a dream spot, a holiday home in a unique location, or a solid investment opportunity? We’re happy to think along with you.