Amsterdam is one of Europe’s most popular city destinations in terms of both tourism and business travel. Increasing concerns around lack of housing stock to buy or rent, inflated property prices, and anti-social behaviour of transient guests prompted early regulation of the short-term stay sector made through digital booking platforms.
Amsterdam is one of the strictest in Europe when it comes to managing tourists as well as expats. Expats are required to register with the local council within five days of arriving in the Netherlands, as Yolanda Blomjous, Situ’s Country Manager for Benelux, points out. Yolanda notes, “In order to minimise the number of visitors, whether it be tourists or expats, Amsterdam council has imposed restrictions on short-stay accommodation and is no longer handing out short stay licenses, which means most will run out by 2024 – leaving less apartments in the city centre.” Hotel licenses are still issued, however.
As in other cities, aparthotels in Amsterdam are being developed and have the advantage of being able to cater to both short and extended stays on the same license. The market also sees high taxes and other regulatory instruments used by the authorities. For example, in 2017 the levy for short-term stays in the city was 6% VAT and 5% city tax; now in 2023, 9% VAT and 10% city tax is charged, or 7% city tax plus European tourism tax depending on the location in Amsterdam.
Using tax to regulate the short-term stay sector can have unintended implications, however. In this case, the taxes intended to help regulate visitors to Amsterdam in turn affect those who are relocating. The city tax paid by relocating expats is claimed back after registration at the local council and is therefore voided from the date of registration (‘inschrijven’) with proof of residence (BRP).
Since regulations tightened in 2018, it has been observed that properties are not being withdrawn from the housing market to such a degree as previously witnessed[i], with the continual setting out of new rules also dissuading people from renting out their properties for short-term holiday lets. This could mean less availability overall and a less diverse inventory of residential property in the extended-stay sector in Amsterdam.
Another factor affecting the availability of extended-stay accommodation in Amsterdam is the residence permit system. For stays of more than 90 days, individuals must register with the local municipality and arrange residence permits. Relocating professionals and families must all apply for a permit.
Long wait times to register at the council (usually around 8 weeks) in certain cities affects the availability of short-stay accommodation in these locations as guests must apply for a registration appointment at the council where their residence is located and are therefore having to extend their temporary accommodation before they can move to more permanent homes. Wait times at the local council from initiation to appointment can vary from 6-10 weeks depending on the season.
The cities with the longest wait times have typically been Eindhoven and Maastricht. In turn, this causes a bottleneck for incoming guests, with bookers requiring a lead time of 6 to 8 weeks to secure temporary accommodation. Long waiting times for their registration appointment in Amsterdam and Amstelveen means that expats are booking accommodation out of the city, such as in The Hague or Utrecht, as Amsterdam is easily accessible from these locations, and it is simpler to organise an appointment and therefore to be able to open a bank account, set up health insurance, and receive payment in a Dutch bank account.
Another incoming regulation change in Amsterdam is likely to be good news for the extended-stay sector, in that the Dutch government is addressing affordability and availability in the rented housing market. As of 1st January 2024, the rental points system in the Netherlands is being changed [ii] and may result in a reduction in suitable rental properties for both expats/ middle to high income singles/ families. This is likely to create more need for temporary housing. The Association of Relocation Professionals in the Netherlands (ARPN) [iii] has forecast that temporary housing requirements will drastically increase from January 2024.
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[i] See, Seidl et al. (2017). Airbnb in Wien: Eine Analyse. Vienna: Wherebnb.in/wien
Available at http://wherebnb.in/wien/
[ii] See, Government of the Netherlands ‘Rented Housing’.
[iii] See, The Association of Relocation Professionals in the Netherlands.