Man Sells House for €25,000 to Repay Social Benefits Debt

by Marcus Liu - Business Editor
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In the Netherlands, a man sold his house well below market value and received social assistance for over 18 months. Now he has to pay back almost 25,000 euros.

After years of alcohol and drug addiction, a man from the Dutch town of Hengelo found himself in financial distress. To support him, his ex-in-laws bought his house, in which he was allowed to continue living. The selling price was 175,000 euros – well below the value of 241,000 euros, according to the Dutch daily newspaper “Algemeen Dagblad” (AD) reports.

Selling a house too cheaply leads to repayment of social assistance

After the sale, he paid off the mortgage and debts – but money remained tight. He received a total of 24,890 euros in social assistance over 18 months. The city of Hengelo did not recognize any entitlement to the benefits because the man was said to have had enough money to support himself by selling the house for less than its value.

According to AD, the city converted the amount received into a loan. The man objected to the decision and went to court. He argued that the house was dirty and in need of renovation. He was also a single father because his son was living with him at the time the house was sold.

According to the court, a man received the money illegally. (symbol image) Imago / Chromorange

The court ordered the Dutchman to repay 24,890 euros

The court rejected the objections. The house was sold correctly and the cleaning effort had little influence on the value. The man’s son was also of age at the time of the sale and was not considered as a single father.

In the end, the court ordered the Dutchman to repay 24,890 euros. Social assistance is considered to have been received unlawfully.

Social welfare fraud: In serious cases, there is a risk of up to 10 years in prison in Germany

The same applies in Germany: Anyone who intentionally provides false information about social assistance or withholds important information must expect consequences. Such cases can be prosecuted as fraud, explains the Dannhauer Law Firm. The consequences range from a fine to five years in prison. In particularly serious cases, such as high levels of damage or commercial conduct, there is a risk of up to ten years in prison.

date: 2026-02-12 17:04:00

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