Renting your home on Airbnb: understanding the rules in the Netherlands

Renting out your own home on Airbnb sounds like an interesting opportunity to earn extra income right? But is it allowed without breaking any rules? In this guide, we’ll walk you through the regulations that apply.

At present, the Netherlands boasts over 75,000 available Airbnb accommodations. While this benefits tourists, it can pose challenges for municipalities and residents, occasionally leading to disturbances from an influx of tourists in residential areas. For a long time, there was no clear legislation regarding renting out your property on Airbnb. However, since 2021, a significant change took place with an amendment to the Housing Act, specifically the Tourist Rental of Residential Space Act. This amendment empowers municipalities to intervene if necessary, considering the liveability of the residential environment.

What actions can municipalities take to regulate Airbnb rentals?

• Registration Requirement: Offering residential space without a registration number is strictly prohibited, aiding efficient enforcement.
• Nightly Limits: Some municipalities, such as Amsterdam, have imposed a maximum of 30 nights per year for rentals.
• Notification Obligation: Landlords may need to notify the municipality in advance, facilitating compliance checks.
• Licensing Requirement: In addition to registration, landlords may need a permit for tourist rentals. This measure is applied when registration or notification obligations prove ineffective.

The extent to which municipalities apply these measures varies, and those considering Airbnb rentals should check with their local municipality for specific guidelines.

Other Considerations for Airbnb Rentals

In addition to the municipal regulations, there are other factors to consider. You must be the owner of the property you intend to rent out. Renting out a property you’re leasing is generally not allowed unless you have permission from the owner and Owner’s Association.

If you have a mortgage, you need to seek approval from your mortgage lender before renting out your property. The permissibility of renting out your purchased home on Airbnb depends on your mortgage terms and involvement with a Homeowners’ Association. Check your mortgage terms for any restrictions on renting out your property. Some banks, like ABN Amro, may prohibit long-term rentals, and interpretations regarding short-term rentals like Airbnb can vary.. It’s crucial to review the specific conditions of your mortgage provider.

Homeowners’ Association: If you are part of a Homeowners’ Association, approval is typically required for commercial use of your property. Non-compliance may result in fines or legal consequences, as outlined in the association’s rules.

For those without a mortgage or Homeowners’ Association affiliation, renting out your home on Airbnb is generally permissible, although regulations in Amsterdam may necessitate mandatory registration with the municipality.

Do I Need to Pay Taxes When Renting Out My Home on Airbnb?

When temporarily renting out your purchased home, the tax authorities consider this as income from your property. Such income falls under Box 1 (taxable income from work and home). You are required to add 70% of the rental income to your total income. However, you can deduct related expenses, such as cleaning costs and utilities.

Example:

You earn € 2.000,- by renting your home for two weeks. After deducting cleaning costs (€ 50,- each for pre and post-guest cleaning) and € 50,- for utilities, you have incurred total costs of € 150,-.

Calculation: € 2.000,- € 150,- = € 1.850,-

You are then required to declare 70% of this amount to the tax authorities.

Final Calculation: € 1.850,- * 0.70 = € 1.295,-

Ultimately, you need to add € 1.295,- to your taxable income derived from your property.

In conclusion, while Airbnb can be a lucrative option, it is crucial to be aware of and adhere to the rules and regulations governing short-term rentals in your area, ensuring a smooth and lawful experience for both hosts and guests.

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