Amsterdam ‘on ice’ following an important decision by the Dutch Supreme Court. The decision made puts the practice by the Municipality of Amsterdam regarding fines for illegal short-term rentals under the microscope.
The Council of State ruled that the fines imposed on city residents when they rent out their homes to tourists without complying with the rules are excessive and disproportionate.
The decision comes at a time when Amsterdam is trying to regulate short-term rentals in order to limit tourist pressure and ensure that rentals are carried out in a fair way for both residents and visitors.
Excessive fines
According to the decision of the Supreme Administrative Court, the fines imposed by the Municipality of Amsterdam do not take into account the differences between private and commercial rentals, the seriousness of the infringement, or whether it is a first infringement.
This lack of “subtlety” in local authority decisions was considered critical by the court, given that the fines imposed are already quite high.
The case that led to this decision concerned an Amsterdam resident who was fined €11,600 for renting her house to five tourists, when the maximum allowed was four people.
The court ruled that although the woman had broken the rules and should be punished, the fine should have been much lower, suggesting a figure of €2,900.
Άμστερνταμ: Ισορροπώντας μεταξύ Airbnb, ξενοδοχείων και κρουαζιέρας
Putting Amsterdam ‘on ice’
Following this decision, the Municipality of Amsterdam is obliged to “freeze” the imposition of new fines for short-term rentals until a new, fairer system for calculating fines is in place.
This decision does not mean that offenders will go unpunished, but that the fines imposed in the future should be more proportionate and fair, and leaves the fines, and Amsterdam ‘on ice’.
New licensing system
As a reminder, since July 2020, the City of Amsterdam has introduced a licensing system for short-term rentals, which requires residents to register each rental and adhere to strict limits, such as a maximum of 30 nights per year for renting a private residence.
The move was intended to reduce the tourist burden in the city, but also to control the growth of short-term rentals that often drive up property prices, making it difficult for residents to stay.
However, the court ruled last year that the city’s decision to completely ban short-term rentals in some parts of the city centre was excessive, as it had not considered other, less restrictive solutions.
The Supreme Court’s decision is a victory for those who consider the fines excessive and paves the way for a more balanced and fair way of managing short-term rentals in the city of Amsterdam.
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