The proposed short-stay bill: what it means for the hotel industry

Under current Dutch law, tenancies that are "by their nature of short duration" are exempted from residential tenancy protection. This is an open-ended criterion, to be determined on a case-by-case basis. Under existing case law, a hotel room is generally considered to fall under the exemption of "use that is by its nature of short duration", particularly where the guest has access to hotel facilities and the temporary character of the stay is reflected in the agreement.

The new bill draws a hard line: this exemption will apply only to stays of 30 nights or fewer. If a short-stay arrangement with the same tenant in the same property exceeds 30 nights, it is automatically treated as an indefinite-term tenancy.

While the government acknowledges that the 30-night cap raises questions for hotel owners and operators whose guests regularly stay longer than 30 consecutive nights, the new bill does not do away with this principle. Instead, it imposes a strict cut-off at 30 nights, regardless of whether the accommodation looks and feels like a hotel. Successive stays by the same tenant in the same building, even in different rooms, are counted together. This means hotels cannot work around the 30-night threshold simply by moving a guest to another room every 29 nights. The mandatory tenancy protection regime kicks in from the thirtieth night and does not apply retroactively.

Hotels and holiday lettings can continue to operate under the short-stay exemption for guests staying fewer than 30 nights, provided the nature of use, the type of property, and the intention of the parties are consistent with short-term recreational or tourist accommodation.

Where a hotel room or serviced apartment qualifies as residential space (woonruimte) and the same guest stays for 30 nights or longer, the full mandatory Dutch residential tenancy regime applies. The most significant consequences for the hotel industry include the following.

1. The tenancy becomes indefinite

If residential accommodation is let for more than 30 nights, the tenancy must in principle be based on an indefinite-term tenancy agreement. Once a stay reaches the 30-night threshold, the agreement is automatically treated as an indefinite-term tenancy from the thirtieth night onwards.

Under Dutch residential tenancy law, a tenant enjoys strong security of tenure. The landlord can only terminate the tenancy on one of the limited grounds prescribed by law. If the tenant does not agree to the termination, the tenancy remains in force until a court has issued a final, non-appealable judgment in the landlord's favour. An exception applies where a first-instance court judgment has been declared provisionally enforceable (uitvoerbaar bij voorraad), meaning the judgment can be enforced even while an appeal is pending.

The law recognises a limited exception for temporary tenancy agreements not exceeding two years. This exception is only available where the tenant falls within one of the categories listed in the Decree on Specific Groups Eligible for Temporary Tenancy Agreements (Besluit specifieke groepen tijdelijke huurovereenkomst). The listed categories include, for example: (i) students from outside the municipality or from abroad; (ii) tenants who are temporarily living elsewhere due to urgent works or renovation of their home; and (iii) urgent housing seekers.

Please note that a temporary tenancy agreement is exempt only from the statutory tenancy termination regime (under which the landlord can only terminate on limited grounds and by court order, as described above and further detailed below). All other mandatory residential tenancy rules continue to apply, including the rent regulation and service charges rules set out below.

2. Grounds for termination are restricted

Where the full mandatory Dutch residential tenancy regime applies, a landlord can only terminate the tenancy on one of the limited grounds set out in the law. These include, among others, the landlord's urgent need to use the property for itself (but not for the purpose of selling it), the tenant's failure to behave as a good tenant, and the implementation by the landlord of a zoning plan applicable to the leased space. Termination by the landlord on any of these grounds can only take effect by court order.

3. Maximum rent levels apply

The rent of residential properties must comply with the mandatory limits set under the Dutch Housing Valuation System (known as the Woningwaarderingsstelsel, or WWS). This is a points-based system used to assess the quality of a residential property, with each point total corresponding to a specific maximum rent. As a result of the Affordable Rent Act (Wet betaalbare huur), both the lower and the middle segments of the rental market are now regulated.

The lower segment includes residential properties with an initial monthly rent of up to EUR 932.93 (as adjusted annually). The middle segment includes residential properties with an initial monthly rent above EUR 932.93 and up to EUR 1,228.07 (as adjusted annually), corresponding to properties with up to 186 WWS points. The higher segment (with an initial rent above the mid-rent threshold) remains unregulated.

Points are allocated based on a range of factors, including the size of the rooms, kitchen and bathroom facilities, outdoor space, parking, energy performance, heating and cooling, and the municipal property valuation (WOZ-waarde).

Tenants of residential properties can challenge rents that exceed the WWS limits through the Rent Tribunal (Huurcommissie) or the municipality, which can enforce compliance and impose fines. If the Rent Tribunal concludes that a property does in fact fall within the regulated lower or middle segment, the rent will be capped accordingly.

4. Service charge rules apply

The landlord must follow statutory rules on service charges for residential accommodation, including providing the tenant with an annual breakdown and settlement of the charges incurred.

"Service charges" are limited to fees for goods and services provided in connection with the occupancy of the property. The Service Charges Decree (Besluit servicekosten) currently sets out a non-exhaustive list of items that may be charged. This will change on 1 January 2027, when the Modernisation of Service Charges Act enters into force, replacing the current open-ended list with a fixed list of permitted service charge categories.

All charges beyond the base rent – including those for furnishing, cleaning, internet, gym access, and other amenities typically bundled into hotel rates – must be classified as service charges. These charges must be reasonable, based on actual costs, and the landlord must provide the tenant with an annual breakdown and settlement. For hotel operators accustomed to all-inclusive pricing, this means splitting the room rate into a separate rent component and itemised service charges.

Where only a total price has been agreed without specifying rent and service charges separately, the Rent Tribunal (Huurcommissie) can, at the tenant's request, determine the rent and the advance payment for service charges. This division of the all-in rent into an amount for the actual use of the property (the rent) and an amount for the services provided (the service charges) may result in a relatively low rent.

5. Supervision and enforcement under the Good Landlord Act

Municipalities are responsible for supervising and enforcing the rules of the Good Landlord Act (Wet goed verhuurderschap), including compliance with maximum rent levels and service charge rules. The 30-night cap simplifies enforcement: municipalities no longer need to assess on a case-by-case basis whether the short-stay exemption applies. They can issue administrative orders, impose fines, or, as a last resort, take over property management for repeated violations. Hotels offering stays beyond 30 nights without complying with the residential tenancy regime face significant regulatory risk, including public-law sanctions.

6. Alignment with VAT changes

The 30-night threshold mirrors the amended EU VAT Directive 2006/112/EC. The letting of immovable property is generally exempt from VAT. An exception applies to accommodation in hotels and businesses with a similar function, including holiday parks and campsites. From 1 July 2028, this exception is limited to stays of up to 30 nights (which remain subject to VAT at the general rate). Stays of more than 30 nights will be VAT-exempt.

This means that input VAT incurred on the acquisition, renovation, furnishing, and ongoing operation of the property will no longer be fully deductible to the extent the property is used for exempt lettings. Where a property is used for a mix of stays (within and exceeding the 30-night threshold), the owner may need to apply a pro rata deduction – that is, allocating input VAT between the taxable and exempt portions of the letting activity.

A change from VAT-taxable to VAT-exempt use does not only affect future deductions; it may also require a retroactive adjustment (herziening) of input VAT that was deducted in previous years (i.e., on the acquisition of the property or on certain investments in the property).

The amended EU VAT Directive must be transposed by 30 June 2028 and takes effect in the Netherlands on 1 July 2028. No transitional provisions have been announced to date.

• July–August 2026: The public consultation closed in late August 2026.
• After consultation: The bill will be sent to the Council of State (Raad van State) for advisory review, and then to Parliament (Tweede Kamer).
• Entry into force: To be determined by Royal Decree, with standard transition periods taken into account. Notably, the bill contains no transitional provisions, meaning that the new rules will apply immediately to all tenancy agreements, including existing ones, from the date of entry into force. Hotels with extended-stay guests must therefore comply from day one; existing bookings are not protected. Market commentators have flagged this as particularly concerning, noting that investors are already pausing or reconsidering investment decisions in anticipation.
• Evaluation: The Minister must report to Parliament on the effectiveness of the Act within five years of entry into force.

Hotel operators, serviced apartment providers, owners, and investors in extended-stay concepts should review their current booking structures and contractual arrangements. Where stays routinely exceed 30 nights, the legal and commercial implications could be substantial. For tailored advice on how the proposed legislation may affect your business, please contact our experienced Hotels & Leisure team.

Would you like to know more or exchange ideas regarding this publication? Please contact us, we look forward to discuss this with you.