Commercial real estate in Holland: what you need to know before renting premises
In the case of scaling a business and opening an office in the Netherlands, it is important to first assess the real estate markets in the country. It is necessary to understand what option would be optimal – the purchase of an object or its rental. Commercial real estate in Holland has a number of features with which it will be useful to familiarize yourself.
Most often, companies prefer to rent the premises. This option is less expensive than buying, in addition, it is possible to draw up a contract for a short or long period. By renting property for a short period, you will remain flexible if you have to move to another city or wind down the business. The long-term option will be more financially advantageous and give you the certainty that you will not have to look for another office.
If a company is considering the further purchase of its own real estate in the Netherlands, then leasing is a good solution. In this case, it is not necessary to invest a large sum at once, and the rent can be paid from the profits. It will not require spending money from the company’s capital. Another plus is that there are tax incentives for paying rent in the country.
In the Netherlands, there are two types of commercial property leases. The first is to rent premises for the small business sector, this document is regulated by Article 290 of the Civil Code. Under this option falls real estate, which is used for retail trade, restaurants or cafes, and hotels. This also includes premises for collection and delivery services. According to the law, the maximum term of the lease of such real estate is 10 years, most often the parties conclude a contract for 5 years with the possibility of extension. After the ten-year period expires, a new document is drawn up.
The second type of contract refers to Article 230 of the Civil Code, which regulates the lease of real estate, which is used for offices, garages, and warehouses. This option is more flexible, there are no restrictions on the term of the lease, and it all depends on the wishes of the parties. In addition, if there is no written contract, the rent of the premises can be unlimited in time.
In Holland, the rent is set by the agreement of the parties. It is important to assess the market and offer rates in advance to argue your wishes to the landlord. The best solution is to hire a real estate agent, who will advise you on all important issues.
Termination of the contract between the parties can be done orally or in writing. In this case, the landlord must notify the tenant of the eviction 2 months in advance.
As for the supply of commercial real estate in Holland, it is quite limited. However, you can still find good options in terms of location and cost.