Approximately 1.2 million inhabitants of the Netherlands do not have the Dutch nationality. Obviously, a large percentage of this group doesn’t speak Dutch. Many foreigners live in the Netherlands because of their work or studies, or they have moved here to be with their Dutch partner. It’s common for Dutch couples to make a cohabitation contract at some point in their relationship. If you do not speak Dutch, you can have your cohabitation contract drawn up in English. In this blog I will explain what a cohabitation agreement is. You can also download a free example of an “Engels samenlevingscontract” further down this page.
What is a cohabitation contract?
A cohabitation contract is a notarial deed in which cohabitants record certain agreements about their shared household. You always need a notary to draw up a cohabitation agreement in the Netherlands.
In many countries, a “notary” is someone who has a license to legalize signatures. In mainland Europe, a notary is a public official who has the authority to draw up authentic deeds. These notaries are called “civil-law notaries”. They have a university degree and are officially appointed by the government. Are you from a country outside of Europe? Then it’s important to understand that there is a big difference between a non-European “notary” and a European “civil-law notary”.
If you want to have a cohabitation contract drawn up in the Netherlands, then it is customary to first schedule an exploratory meeting with the notary. The notary will then create a draft for your cohabitation contract. If you agree with this draft, there will be a second appointment in which the official deed is signed.
The above means that drawing up a cohabitation contract is quite a formal matter. There is no point in drawing up a cohabitation contract yourself without a visit to the notary. In the Netherlands, only an official notarial cohabitation contract is recognized by authorities.
For the rest, Dutch law is very flexible with regard to the form and content of the contract. For example, it is no problem to draw up the original cohabitation contract in English or whatever other language you request. As long as the notary and both cohabitants have a good command of the requested language, the deed can be drawn up in that language. However, it is advised to pick the English language. This is because it is unlikely that staff at, for example, your bank or pension fund understands any other languages than Dutch and English.
Dutch law places few requirements on the contents of the contract. For the most part, you can decide for yourself what you do and do not want to include in the contract. The only requirement set by the law is that you have to agree to take care of each other financially.
Why would you make a cohabitation contract?
A cohabitation contract has some specific advantages in the Netherlands. For example, you become tax partners. This means that you jointly file your income tax returns. Normally, this means you pay less income tax. By signing a cohabitation contract, you are also entitled to a large exemption from inheritance tax. This is important if you want to appoint each other as heirs.
The subject of cohabitation is not regulated in Dutch law. This means that many things that you may think are logical are not regulated at all by Dutch law. An example is the situation where you buy a house together and one of you invests more money than the other. It seems logical to me that you would want to be able to ask for this money back if you sell the house in the future. However, there is no clear legal basis for this in Dutch law. It is therefore important to include clear agreements about this in your cohabitation contract. This prevents conflict if something happens in the future.
One of the most important things that couples in the Netherlands must arrange is the registration for the partner’s pension. If one of you dies, the partner’s pension means that the surviving partner is entitled to a lifelong monthly benefit from the deceased’s pension fund. Many couples do not know that this benefit starts immediately after death. Precisely for that reason it is so important to register each other with the pension fund. In a cohabitation contract you can make clear agreements about registration for the partner’s pension and deregistration if you split up in the future.
What agreements are included in a cohabitation contract?
As you have already read above, the only mandatory clause is that you have to take care of each other financially. This means that you agree to share the household costs in proportion to your income, for as long as you live together. So whoever earns the most must also pay the most. This agreement is included in the free English template for a cohabitation agreement below. Before you view the template, here is a summary of the most important agreements in the contract:
1. Starting date of cohabitation
First of all, it is important that you actually have to live together in the Netherlands. This must be evident from the official registration at the same address with the municipality. If this is not the case, your cohabitation contract will not be recognized by authorities. The date is important because some rights only take effect after a certain period. You do not have to wait to make an appointment with the notary until you have officially started living together. You can go to the notary at an earlier time to have a draft made.
Have you not yet chosen a notary? In that case, always compare the rates before choosing a notary. Dutch notaries are allowed to determine their own rates. As a result, there are large price differences between notary offices. You can find the rates in your area on this page. Enter a place name and you will immediately see how much money you can save. Please note: the rates shown only apply to a deed in the Dutch language. It is necessary to request quotes and state in the description that you want your cohabitation agreement to be made in English.
2. Taking care of each other financially
The mandatory clause to take care of each other financially is expressed in the agreement that you share the household costs in proportion to both incomes. This agreement only applies for as long as you live together. So you do not have to pay alimony in case of a separation.
Most Dutch cohabitants implement this agreement by opening a shared bank account. It’s common for both cohabitants to deposit a montly amount into the account, which they can then use to pay all shared costs.
3. Owning a home
In the example for a cohabitation agreement below, I assume that you have bought a house together. Is that not yet the case? Then it is still useful to take this into account for the future. When you do buy a house, the necessary agreements are already included in your cohabitation contract.
It is customary to agree that you have a right to reimbursement for any private capital that you invest in a jointly owned home. For example, do you invest your savings or an inheritance in a jointly owned home? Then you can ask for this capital back in the event of a break up.
Furthermore, it is customary to agree that the household effects are jointly owned. This means that after the signing of the deed you will jointly own all furniture and other household goods. You can mention any exceptions to his rule on a list that you attach as an appendix to the cohabitation agreement. In that case, the items on the list remain private assets.
You can agree in a cohabitation contract that all jointly owned property will go to the surviving partner if one of you passes away. Consider, for example, the jointly owned home and household effects. This agreement however does not mean that you become each other’s heirs. In general, it is wise for foreigners living in the Netherlands to make a will. This, for example, prevents uncertainty about which country’s law applies to the inheritance. In the Netherlands we are of the opinion that you are subject to Dutch inheritance law if you live here. Even if you are not Dutch. Maybe you do not agree with this viewpoint. Therefore, always discuss this subject with your notary!
4. Partner’s pension
As you have already read above, it is extremely important to register each other for the partner’s pension. Unfortunately, this is not possible for everyone. For example, it is not possible to register your partner if you are not currently accruing a pension or if your pension fund does not offer a partner’s pension.
Do you not have the option to register your partner with your pension fund? But do you want to leave him or her well taken care for if you pass away? Then you can opt for a “term life insurance”. In Dutch this is called an “overlijdensrisicoverzekering”. Such an insurance pays out a large lump sum in the event of death. For just a few euros per month you can insure a significant amount of money.
The best option is a so-called crosswise (“kruislingse”) insurance. This means that you take out mutual insurance on each other’s lives. Partner A takes out insurance on the life of partner B and vice versa, partner B takes out insurance on the life of partner A. This crosswise construction is exempt from inheritance tax in the Netherlands.
Have you bought a house together? Then there is a good chance that you have already taken out term life insurance together with the mortgage application. Please realize that this insurance is pledged to the mortgage bank as standard. This means that the insurance payout is repaid directly on the mortgage debt. The surviving partner cannot use this money for anything else than lowering the mortgage debt. Some couples take out a second insurance for this reason. This a smart idea if you can’t register your partner for a partner’s pension. Especially if you have kids.
Voorbeeld Engels samenlevingscontract
The example for your English cohabitation agreement below contains all usual agreements. The deed assumes that you have purchased a home together. As you have already read above, signing a cohabitation contract does not make you each other’s heirs. Many couples therefore also have a will drawn up. Please note that in the Netherlands, a will is only valid when drafted and signed by a notary.
Do you agree with the content of the example below? Then the next step is to select a notary.
What can you arrange in a will?
These are the usual topics that Dutch couples arrange in their will:
- A so-called “surviving partner arrangement” if there are children. In Dutch this is called a “langstlevende regeling”. This means that the children receive their inheritance only after the death of the surviving partner.
- The appointment of reserve heirs if both partners die without leaving any children. For example, you can appoint both families as mutual heirs.
- The appointment of an executor who will settle the inheritance when the last of both partners dies.
- One or more bequests (in Dutch: “legaten”). You can determine that a part of your inheritance does not go to your partner but to someone else. For example, you can leave a fixed sum of money to your brother or sister.
Under Dutch inheritance law, you need a notary to draw up a will. Do you have assets abroad? For example, a house or a share in the family business? Please remember to clearly indicate this to the notary. It is also important to mention if you have made a will in another country in the past. In a Dutch will, all previous wills are revoked by default. This also applies to wills you have made previously in other countries. If that is not your intention, you must clearly indicate this to the notary.
Most European countries (EU member states) have agreed to recognize each other’s inheritance law. This means that your Dutch will is also valid in France or Germany, for example. This only applies to inheritance law and not to inheritance tax. There is a chance that multiple countries will levy taxes on your inheritance. This is a particular risk if you own assets in several countries. It may be wise to seek advice about this from a specialist.