Renting office space isn’t just about location — understanding the financial side, like VAT on office rentals, is just as important. In the Netherlands, office rentals are usually VAT-exempt, which can be both an advantage and a disadvantage. Learn how these rules might impact your situation as a tenant.
Taxes on Rented Office Space
Thinking of renting office space? Then it's smart to dive into the financial details — especially the VAT (Value Added Tax) regulations. Did you know that, in the Netherlands, rental of office space is generally exempt from VAT? That’s because the rental of immovable property, such as office buildings, is usually VAT-exempt under Dutch tax law. This rule can work in your favor — or not — depending on your specific situation as a tenant. Let’s take a closer look at how VAT and office rental work in the Dutch context.
Taxed rent: when is it beneficial?
In some cases, opting for taxed rent can be financially advantageous. If both tenant and landlord agree, they may opt to apply VAT to the rent. This means the VAT can then be reclaimed as input tax — but only if the office is used for at least 90% VAT-taxable business activities. That makes this option appealing for entrepreneurs who themselves provide VAT-liable goods or services. It allows you to reclaim VAT on expenses like maintenance and investments in your rented office space.
Exceptions to the VAT exemption for office space
However, keep in mind: there are exceptions to the VAT exemption. Certain types of rentals — such as hotel rooms, guest accommodations, or parking spaces — are always subject to VAT. These costs cannot be VAT-exempt and should be factored in when selecting the right location for your business. Not all office rentals fall under the standard VAT exemption rules, especially in the Netherlands.
The revision period and VAT deductions
Choosing to rent an office with VAT comes with a so-called "revision period" — which in the Netherlands is set at 10 years. What does this mean? If the office space is rented VAT-free within this 10-year period, the landlord must repay the VAT they previously deducted on investments. These costs may then be passed on through the rent. It's an important detail to consider for both landlords and tenants.
The benefits of taxed rental for tenant and landlord
In a taxed rental arrangement, both tenant and landlord may deduct VAT as input tax. This can result in a lower net rental cost, since both parties have reduced VAT expenses. For landlords, opting into VAT-charged rent can be beneficial, as it allows them to deduct VAT on investments and maintenance. In VAT-exempt rentals, those costs are often included in the rent — which may make it more expensive for the tenant.
Dutch tax authority requirements for VAT on rent
The Dutch tax authority (Belastingdienst) has clear requirements for applying VAT to rental agreements. One key condition: the tenant must use at least 90% of the rented office space for VAT-liable activities. If the tenant can demonstrate this, the landlord may charge VAT on the rent. This can be a smart move for businesses that meet this condition.
Cooperation required for non-VAT-liable tenants
If either the tenant or the landlord is not VAT-liable, they must jointly apply for taxed rent with the Dutch tax authority. This additional administrative step can lead to substantial savings, as it allows both parties to benefit from VAT deductions.
Find your ideal office space with Sollf
Choosing the right office space might seem complicated with all the VAT rules and conditions — especially under Dutch tax law. But you're not alone. At Sollf, we bring supply and demand together in the world of office space. Whether you’re looking for a modern flexible workspace or a traditional office building, we’ll help you find the right match for your business. With our expertise and wide offering, we make the process smooth and simple — click, rent, work.
