New vacancy tax to push property owners to fill empty homes amid housing crisis
Dutch municipalities can now impose a tax on owners of properties vacant for over a year, aiming to free up housing in a tight market. The measure targets unused space, giving local governments a stronger tool to combat the housing shortage affecting thousands.
| Key Fact | Details |
|---|---|
| New Instrument | Vacancy tax for properties empty >1 year |
| Issued by | Minister Elanor Boekholt-O’Sullivan (Housing and Spatial Planning) |
| Effective Date | After inclusion in local tax ordinance (1-year vacancy period applies) |
| Support for Municipalities | Association of Netherlands Municipalities (VNG) develops model tax decision |
| Additional Powers | Electricity data checks, temporary rental permits, reuse obligations |
| Legislative Update | Amendments to Vacancy Act under consultation |
The Ministry of Housing and Spatial Planning oversees national policies to address housing shortages and urban development. Municipalities implement these policies locally, balancing property rights with public housing needs through regulations like the vacancy tax.
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Vacancy tax: a new instrument in tackling vacant properties
Municipalities will receive a new instrument from the House of Representatives to address long-term vacant properties: the vacancy tax. This will allow municipalities to impose a tax on owners of properties that have been vacant for more than a year. The aim is to ensure that all available housing space is used for residential purposes. Vacancy is undesirable in times of housing shortages, when many people are looking for a home.
Minister Elanor Boekholt-O’Sullivan of Housing and Spatial Planning published the decision on March 20. Municipalities can now include the vacancy tax in a local tax ordinance. From that moment, the one-year period begins during which a property must remain vacant before the tax can be imposed. The Association of Netherlands Municipalities (VNG) is developing a model tax decision for municipalities, detailing the precise design.
Municipalities can use the vacancy tax in combination with existing instruments under the Vacancy Act. The cabinet is currently working on amendments to the Vacancy Act. The draft bill was open for consultation last summer and will soon be submitted to the Council of State for advice.
With the amended Vacancy Act, municipalities will gain more effective powers to address vacancy. For example, a municipality may issue a collective permit for temporary rental, applicable only to residential spaces within a building and in cases of demolition and (re)construction. Municipalities will also be able to request a property’s electricity consumption data to verify whether it is vacant. Additionally, municipalities may impose an obligation to bring a long-vacant property back into use.