Netherlands Commercial Rent Increases: Indexation and Review

For commercial leases in the Netherlands, rent adjustments are primarily governed by the Dutch Civil Code (Burgerlijk Wetboek), which came into effect on 1 January 1992. While adjustments are largely determined by contract, the law provides specific mechanisms for court-ordered rent review before the Kantonrechter (Subdistrict Court). The rules differ significantly between 7:290 BW and 7:230a BW premises.

Annual Indexation

CPI Indexation (Standard)

Most commercial leases include an annual indexation clause linked to the Consumer Price Index (CPI):

• CBS (Statistics Netherlands) publishes CPI figures monthly
• The ROZ model uses CPI as the standard
• Indexation typically occurs on January 1 or the annual rent payment date
• Under standard commercial terms (ROZ), indexation occurs 'by operation of law' (van rechtswege). Written notice is not a statutory requirement for the increase to be legally owed.
• Landlords may claim unpaid indexation retroactively for up to 5 years (Art. 3:306 and 3:308 BW).

Calculation

The indexed rent is calculated as:

New rent = Old rent × (New CPI / Old CPI)

• CPI figures are freely available from CBS
• The reference year and month are specified in the contract

Alternative Indexation

Parties may also choose:

• Fixed percentage increase — e.g., 3% per year
• Turnover-based rent — percentage of the tenant's revenue (in retail)
• Stepped rent — predetermined rent levels per period

Court-Ordered Rent Review (7:290 BW)

When Available

For 7:290 BW premises (retail, hospitality), either landlord or tenant can request a rent review from the court (Art. 7:303 BW):

• After the expiration of the contractually agreed lease term.
• If no term was agreed, or after the first agreed term has passed, a review can be requested every 5 years since the last rent determination.

Procedure

1. Expert advice — A claim for rent review is only admissible if accompanied by advice from one or more experts.
2. Appointment — Parties must first attempt to appoint the expert(s) jointly. Only if they fail to reach agreement can the Subdistrict Court (Kantonrechter) be requested to appoint an expert (Art. 7:304 BW).
3. Court application — based on the expert advice.

4. Comparison method — The court sets the rent based on the average of rents of comparable local business space during a reference period of 5 years preceding the day of the claim.
5. Gradual adjustment — The court may order the adjustment to be phased in over a maximum of 5 years (Art. 7:303 par. 4 BW).

Costs

• Expert report costs are typically borne by the requesting party
• Court proceedings: costs according to standard rules

Rent Adjustment for 7:230a BW

For 7:230a BW premises (offices, storage):

• No statutory right to court-ordered rent review exists.
• Rent adjustments are governed entirely by the lease agreement.
• Open-market rent review clauses are common.
• Without an adjustment clause: rent remains unchanged.

Turnover-Based Rent

In retail properties, a turnover-based rent component is common:

• Base rent + percentage of annual turnover above a threshold
• Typical percentages: 5–10% of turnover (depending on sector)
• Tenant must provide turnover figures periodically
• Landlord may audit the books

Best Practices for Landlords

1. Use CPI indexation — it is the market standard and widely accepted
2. Define the reference period — which CPI month serves as the baseline
3. Monitor comparable rents — for future rent reviews
4. Start the review process early — procedures can take months
5. Consider turnover rent for retail — it shares risk with the tenant

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