Dutch leasehold (erfpacht) explained for tenants

"Erfpacht" is a word international tenants in Amsterdam hear often. Landlords sometimes mention it as the reason for a rent increase, and it pops up regularly in housing-market news. But for most tenants it is an abstract concept. This article explains in plain English what erfpacht is and when it is relevant to you as a tenant in the Netherlands.

What exactly is erfpacht?

Erfpacht is a real-property right under Dutch law where someone uses the ground beneath a home or building but does not own that ground. The owner of the home (or apartment) pays a periodic fee (the "canon") to the ground-owner for using the ground. In Amsterdam, the municipality is the largest ground-owner: about 80 percent of all real estate sits on municipal leasehold land.

Amsterdam has a long tradition of municipal ground issuance via leasehold. Many homes in the city were built on ground that is owned by the municipality. The home owner (your landlord) pays an annual or periodic canon to the municipality. The leasehold contract typically runs for 50 or 75 years before revision.

Erfpacht is not the same as renting your home. The leasehold owner owns the building (the "opstal") but not the ground. As an international tenant you rent the building from your landlord, who in turn pays canon to the municipality. You are one layer removed from the leasehold relationship.

How does leasehold revision work and what does it do to rent prices?

The problem that indirectly affects tenants is erfpachtherziening (leasehold revision). Leasehold contracts are revised at fixed moments, sometimes after 50 years. At revision, the municipality can substantially raise the canon, based on the current ground value.

Amsterdam has seen sharp increases in canon rates in recent years. A landlord who used to pay 5,000 euro per year in canon can suddenly pay 20,000 euro or more after revision. These are higher costs that landlords try to pass on to their tenants.

However, Dutch law sets limits on how quickly a landlord may raise the rent. A leasehold revision is not a blank cheque for the landlord to double the rent. But it can contribute to long-term pressure on rent prices, especially in the free sector.

Will I notice erfpacht as a tenant in the Netherlands?

In most cases, not directly. You as a tenant have a rental contract with the landlord (the owner of the building). The leasehold construction is a matter between the landlord and the municipality.

Where it can become relevant:

• Rent increase after leasehold revision: Your landlord may try to pass on (part of) the higher leasehold costs. This is only allowed within the legal limits for rent increases.
• Demolition or renovation: If the leasehold on a building expires or is not renewed, this can lead to demolition or renovation. In that case, you as a tenant may face a forced relocation.
• Sale value of the home: When buying a home, leasehold is a crucial point. As a tenant this is less relevant, but good to understand if you ever consider buying in Amsterdam.

What can I do if my landlord raises the rent because of erfpacht?

The same rules apply as for any rent increase. Your landlord may not raise the rent more than the legal maximum, regardless of the reason. Erfpacht is not an excuse for an excessive increase.

For social-housing rentals (under 187 self-contained WWS points): the maximum increase per year is set by national government, typically 3 to 5 percent. For free-sector rentals: the increase is set in your contract, often inflation + 1 percent, capped by national rules.

Is erfpacht an Amsterdam-only issue?

Largely yes. Amsterdam is the municipality that most systematically issues ground via leasehold. Other municipalities have erfpacht (such as The Hague, Utrecht, Rotterdam) but on a smaller scale. About 5 to 10 percent of homes in other Dutch cities sit on leasehold land.

For tenants outside Amsterdam, erfpacht is less relevant in practice. In Amsterdam it is a structural part of the housing market that indirectly affects tenants, especially in the canal belt, Oud-West and Oud-Zuid where most centre homes sit on municipal leasehold ground.

How do I check if my home is on leasehold ground?

Two quick methods:

1. Kadaster check: The Dutch land registry offers a basic property check for about 3 euro. Search your address and look for the "eigendomssituatie" (ownership situation). It will say "vol eigendom" (full ownership) or "erfpacht" (leasehold).
2. Amsterdam map: For Amsterdam specifically, there is a public environment map showing whether a parcel is in leasehold.

For most tenants this check is purely informational. You do not have a direct relationship with the municipality on leasehold, and you cannot influence the canon directly.

Frequently asked questions

Do I have to pay erfpacht myself as a tenant?

No. As a tenant you pay rent to your landlord. The leasehold canon is an obligation of the landlord (the owner of the building) toward the municipality. It cannot be split off as a separate cost on your bill.

Can my landlord refuse to rent to me because the building is on leasehold?

No. The leasehold status of a home does not affect the renting rights of the owner. They can still rent normally, and you have the same tenant protections regardless of leasehold.

Is erfpacht a problem for getting a mortgage?

When buying a home on leasehold ground, it is indeed more complex to get a mortgage. As a tenant you do not deal with this. But if you plan to buy in Amsterdam later, factor erfpacht into your budget research early.

Can my rental contract be ended because of leasehold revision?

In theory, a drastic leasehold situation can lead to demolition or renovation, ending rental contracts. This goes through a legal process with compensation for tenants. It is not a quick or arbitrary procedure, and the landlord must give significant notice (usually 6 months minimum) and pay relocation costs under Dutch law.

Does the Affordable Rent Act affect erfpacht-passing rent increases?

Yes, since 1 July 2024 the Affordable Rent Act caps rent for homes under 187 WWS points, regardless of the landlord's leasehold burden. Free-sector rentals (above 187 points) are not capped, but still bound by the contractual increase clause.

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