For years, the issue of revising the Tenancy Act has been discussed. After the new Tenancy Act was proposed in early July, an online consultation was opened in mid-December. The new law amends current tenancy agreements and also introduces a new one: sustainable lease. Both landlord and tenant should soon have more freedom.
The Tenancy Act is a long-running issue that has already involved many stakeholders. At the beginning of July, LVVN State Secretary Rummenie finally published a "Decision Letter on Tenancy Revision." The online consultation, open since mid-December, allows everyone to share their opinions on the bill. This consultation is open until February 9, 2026.
Long-term agreements
A long-term vision is a common thread throughout the new tenancy law. Agreements must be in effect for a longer period, with both lessor and tenant benefiting, and extra-legal requirements will be rewarded through a fixed framework. This is roughly the synopsis of the bill.
Main points of the new tenancy law:
The current Tenancy Act (since 2007) recognizes two commonly used forms of lease besides cultivation and nature lease: regular lease and liberalized lease. A regular lease agreement has a term of 6 or 12 years. This term is automatically extended. If the tenant's farm is acquired, the leasehold rights are transferred to the successor. A liberalized lease lasts 1 to 6 years and offers more flexibility regarding regulations and prices. The new law adds a third form: sustainable long-term lease.
Sustainability requirements
The new lease has a minimum term of 24 years, and the lease price is freely determined. However, the lease contract is reviewed by the Land Registry. The difference from regular lease lies in the scope for additional statutory requirements. Consider, for example, a ban on the use of glyphosate, the mandatory cultivation of resting crops, or the requirement of SKAL certification, to name just a few. In practice, lessors are increasingly trying to impose such requirements, but tenants quickly see this as excessive. A so-called "positive list" will soon be drawn up that includes all these options. The idea is that if one or more options are chosen, a reduction in the lease price will be applied. This depends on whether the tenant experiences a loss of yield. It will also be possible to include additional requirements in existing agreements.
The liberalized lease will be converted into a short-term lease, with the maximum term doubled to 12 years. This contract is also transferable, but tenants will be assessed. This type of lease can be applied to both land and buildings and has a minimum term of one year. Currently, liberalized leases are often awarded through a public bidding system. This will be replaced by a free price with lease price assessment, with a maximum price set by the government. The exact structure of this pricing system is not yet clear. "We do know that it will be a progressive system," said lease specialist Annelou Olde Beverborg of Countus during a session on lease at the Countus Agro Congress. "The longer the lease term, the higher the rent. A lessor will therefore receive the lowest price for short-term rentals. This encourages long-term agreements."
Indexation of regular lease price
Regular leases currently use regional price standards. "These standards are reviewed every five years based on financial data from assessment companies," explains Olde Beverborg. "With the new regular lease contract, the lease price review will no longer be required. The lessor and tenant will jointly determine the lease price, with indexation. The exact structure of this indexation is still unknown." It is noteworthy, however, that the indexation and review systems for short-term leases are two separate systems, developed independently. The current lease standards do not consider soil type and are always a year behind. The new system should better reflect actual practice.
A long-cherished wish of landlords is to gain more freedom. This will be addressed in the upcoming law by not automatically renewing a lease upon a business acquisition or upon reaching the state pension age. Olde Beverborg: "A business viability test will then be conducted. The tenant must submit a business plan, demonstrate active investment in their business, and explain the role of a potential secondary business line. There is no minimum business size requirement. If you close down part of your business, this test also applies." These measures are intended to reduce "gray or undeclared leasing," where the tenant continues to lease the land but sublets it privately.
Fiscal hurdles
A significant tax hurdle remains leasing in combination with the agricultural exemption and business takeover scheme (BOR). In the case of long-term leasing without crop rotation, the agricultural exemption expires. Upon sale or transfer of the land, the increase in value of the leased land is then taxed. Since 2024, the BOR has no longer applied to rental or lease agreements, with the exception of crop leases (1 or 2 years, where crop rotation is required). In practice, this regularly causes problems. This could be detrimental to these tax options in the future. A practical example: A business owner wants to slow down and lease part of his land to a young farmer in the region. In addition to potatoes and onions, he also grows resting crops. The lessor will soon have to settle with the tax authorities for this land.
Olde Beverborg advises lessors of the possibility of filing a lease claim. "In practice, we see this happen regularly." This occurs, for example, when a lessor wants to sell the land and the tenant wants the first right of purchase. This isn't always properly documented in the lease agreement. Even with a land use declaration with an expiration date, the tenant can still file a claim on the land.
Freedom and long term
In short, the proposed new Tenancy Act partially accommodates both tenants and landlords. It encourages long-term leases, a practice advocated by the Netherlands Association of Judicial and Social Research (NAJK). On the other hand, it offers the landlord more freedom, for example, in setting the price and determining when the landlord reaches the state pension age. The final bill is expected in the third quarter of 2026. If all goes according to plan, the new law will take effect in 2028.