Halal money in the Netherlands
Riba is haram worldwide (Qur'an 2:275-276). In the Netherlands it's everywhere — from your savings account to your pension. Here are the practical workarounds for 2026: mortgages, savings, investing, pensions — what works and why.
⚠ Disclaimer first: This is not financial advice and not a fatwa. Consult a scholar for your specific situation, and an independent financial advisor for tax and risk aspects. The options below reflect 2026 status — always verify the current state.
Why riba is haram — briefly
Allah ﷻ literally declares war on those who continue with riba (Qur'an 2:279). The Prophet ﷺ cursed the eater, the giver, the witness and the writer of riba — "they are all equal" (Muslim 1598). It is one of the 7 greatest sins (Bukhārī 2766).
Two types of riba:
- Ribā an-nasīʾah — interest on loans. What banks do — lending money against compensation over time.
- Ribā al-faḍl — unequal exchange of the same kind on spot basis (1g gold × 1g gold — must be exactly equal). Less relevant for modern consumers.
Savings accounts — every Dutch bank pays interest
Since ECB rates increased, every standard NL bank pays interest on savings. ABN, ING, Rabobank — all of them. Plus crypto staking, plus bond funds, plus anything that yields.
Option 1 · Donate the interest reflexively
Classical fiqh route: don't let interest sit on your account. Make a monthly transfer to charity — not as sadaqah but as tathīr (purification). This isn't "double reward" — it's just dirty money returned to circulation among people in need.
Practical: Triodos, ASN, or a riba-free Triodos account give minimal interest. Or keep it at a major bank and transfer the interest each month.
Option 2 · Disable interest where possible
Some Dutch banks let you disable interest — ask customer service. For example with NIBC Direct you can set interest on your savings account to zero. Not financially ideal, but ideal for your conscience.
Mortgage — the big problem in NL
A standard NL mortgage = riba. You borrow €300,000, pay back €600,000 over 30 years. The difference is interest — pure ribā an-nasīʾah.
Option 1 · Bilkost.nl / Bayan Capital / Mahmaal
Since 2022-2023 several riba-free mortgage providers have emerged in the Netherlands. The legal model is usually murabaha (the provider buys the house and sells it to you at a pre-fixed profit margin — not interest, but one clear amount).
Status 2026: small offering, limited rates, not always competitive with conventional mortgages on monthly payments. But it is possible.
Option 2 · Pure cash + savings
The Prophet ﷺ lived in a rented house. Salman al-Fārisī had no house. Home ownership is not a religious obligation. For some: lifelong renting + saving for ownership is a halal path.
Plus: the Netherlands has social housing, free-sector rentals, housing cooperatives. Not every renting situation is loss.
Option 3 · Family cooperative
Parents, siblings, uncles — pool your money, buy the house cash, and arrange a clear internal purchase agreement. Riba-free because no interest — only transparent ownership ratios.
Investing — Wahed Invest is the NL option
Wahed Invest (NL available since 2021)
Wahed is a global halal-broker, regulated in NL via FCA-EU equivalent. Your portfolio is screened according to AAOIFI Sharīʿah Standard 21 — no riba banks, no alcohol, no weapons, no gambling, no major music/film entities.
How it works: deposit from your NL bank account, choose a risk profile (conservative/moderate/aggressive), and Wahed distributes across halal sukuk + halal stocks + gold. Annual fee ~0.49-0.99%.
Caveats: not all stocks are 100% pure halal — almost all multinationals have at least sub-5% non-halal revenue (purified through tathīr — Wahed automates this with a purification feature).
Direct halal-stock investing
If you want to choose yourself, use our halal screener — check pre-screened tickers (AAPL, ASML, TSLA, JNJ, etc.) or run your own AAOIFI ratios. Brokers: DEGIRO, IB, Trade Republic — all work for halal-only investing if you screen the tickers yourself.
What is NOT halal
- Conventional banks — JPM, ING, BAC, ABN — riba is their core.
- Insurance companies (old style) — Allianz, AXA — due to gharar (uncertainty).
- Bonds — government and corporate bonds are interest instruments.
- Alcohol/tobacco/gambling — Diageo, Philip Morris, Las Vegas Sands.
- Crypto lending / staking — yield on crypto = riba per most fiqh councils.
Pension — a complex topic
The problem: in NL, employer pensions are often mandatory. The pension fund invests in everything — including riba bonds, alcohol, weapons. You usually have no choice to opt out.
Mainstream fatwa position
Most contemporary scholars (incl. NZIO Netherlands, ECFR fatwā, Mufti Taqi Usmani) view mandatory employer pensions in a secular state as ḍarūrah (necessity) — permitted, but:
- On payout, the portion attributable to interest must be tathīr-purified — estimate ~30-40% and donate it to charity.
- For younger generations: where possible, choose a halal portfolio within your pension fund (some funds — APG, PME — have sustainable/halal options).
Personal supplementary pension — Wahed or similar
Alongside employer pension: build your own supplementary pension via Wahed or a halal stock account. This is 100% under your control, no fiqh negotiation.
Practical 5-step action plan
- Audit your financial footprint: bank → savings → mortgage → pension → any investments. Mark what contains riba.
- Reduce exposure: disable interest options on savings accounts. Ask ING/ABN if interest can be set to zero.
- Start halal investing: open a Wahed account. Make monthly fixed deposit (€50-200/m) — start small.
- Plan the mortgage: if you have a conventional one now, pay off on time + save for cash purchase. Or switch to Bilkost/Bayan as soon as their offer is competitive.
- Cleansing: monthly set aside all interest income and transfer to an ANBI charity (Islamic Relief, Muslim Hands, local masjid). Not as sadaqah — as purification.
Provider overview NL (2026)
| Category | Provider | What |
|---|---|---|
| Investing | Wahed Invest | Halal robo-advisor + self-portfolio |
| Investing | DEGIRO / Trade Republic | Standard broker — self-screen via halal screener |
| Mortgage | Bilkost.nl | Murabaha/ijara models — active in 2026 |
| Mortgage | Bayan Capital | Sharīʿah-compliant, small portfolio |
| Savings (low-interest) | Triodos / ASN | Ethical, ESG-focused, still some interest but low — easy cleansing |
| Pension top-up | Wahed Invest | Build your own halal pension portfolio |
| Charity (cleansing) | NZIO, Islamic Relief, Muslim Hands | ANBI-recognised for tathīr amounts |
What to read
- An Introduction to Islamic Finance · Mufti Taqi Usmani — gold standard
- NZIO website — Netherlands Zakat Foundation has fatwas and Q&A specific to NL
"Allah has permitted trade and forbidden riba."
— al-Baqarah 2:275
Next steps
- Zakat calculator — when you build halal wealth, don't forget your zakat duty
- Halal investment screener — for self-investors
- Inheritance calculator — plan ahead