NETHERLANDS Law and Practice Contributed by: Coco van Zuiden, Marijn Bodelier, Sabine Schoute and Simone Wijngaard, Greenberg Traurig, LLP
4.7 Enforcement of Restrictions on Development and Designated Use Typically, restrictions on development and designated use are enforced by means of an administrative order under the threat of a pen - alty payment. In theory it is also possible that an administrative fine is imposed but this was only made possible by the Environment and Planning Act that entered into force on 1 January 2024. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets In principle, there are no restrictions under Dutch law as to who can hold legal title to real estate in the Netherlands. Consequently, Dutch real estate can be acquired and owned by any indi - vidual or legal entity (provided its organisational documents allow this), including foreign indi - viduals or entities. Dutch law does not provide for a special vehi - cle for investments in real estate, although there may be a special tax regime available for vehi - cles investing in Dutch real estate, if certain con - ditions are met. The Dutch vehicles commonly used to invest in/ hold real estate in the Netherlands are: • the public limited liability company (NV); • the private limited liability company (BV); and • the limited partnership (CV). 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity NVs/BVs Both the NV and the BV are companies with lim - ited liability and a capital divided into shares. The shareholders are not liable for the company’s
tions are set forth in the environment plan that applies to the property. 4.4 Obtaining Entitlements to Develop a New Project An environmental permit is generally required for construction activities and/or to deviate from the environment plan. Third parties can object to the permit, and then appeal with the district court. Further appeal is possible with the Administra - tive Law Division of the Council of State. Prior to applying for a permit, developers are expected to involve local residents in their plans. In some instances, it is mandatory to follow a certain pro - cess of participation by local residents. 4.5 Right of Appeal Against an Authority’s Decision Generally, a decision respecting an application for permission for development or the carrying on of a designated use (of the relevant authori - ty’s) is open to objections with the authority itself (sometimes with the involvement of an objec - tions committee). After that, appeal is possible with the district court and further appeal with the Administrative Law Division of the Council of State. 4.6 Agreements With Local or Governmental Authorities It is typical to enter into a so-called “anterior agreement” with a municipality, in which it is usually agreed that the municipality intends to co-operate with the envisaged development and that the developer bears certain costs. In addi - tion, a developer will need to secure (electricity) grid access of a sufficient capacity by conclud - ing an agreement with the grid operator.
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