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What is the general climate of real estate investment in your jurisdiction?
The general climate remains favourable, with a high volume of real estate transactions consisting of single asset deals and large real estate transactions, also supported by increased investments in retail. Compared to other European countries, the yields in prime Dutch real estate are attractive.
Who are the most common investors in real estate?
The most common investors are investment funds and institutional investors, privately held property companies and investors, private equity and listed companies and real estate investment trusts.
A substantial number of investors are based in the Netherlands or other European countries (currently about 50% of new investments). Other investors are based in the United Kingdom and the United States, while recent figures show an increasing number of investors coming from the Middle East and Asia-Pacific.
Are there any restrictions on foreign investment in real estate?
What structures are typically used to invest in real estate and what are the advantages and disadvantages of each (including tax implications)?
Limited partnerships are often used, because they are transparent entities for tax purposes. The structure of a Dutch property company and a Luxembourg holding company is also used due to favourable tax treaties. We also notice that a separate property company is sometimes set up for each property so that it is possible to sell shares in the company instead of the property itself. Further, we have also come across joint venture real estate companies with shareholders that each hold less than one-third of the shares.
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