Erfpacht (ground lease) is a Dutch arrangement where you own the building but lease the land it stands on, usually from the municipality, paying an annual fee called canon. It affects 80,000+ properties in Amsterdam alone. For buyers it changes the financial picture in three ways: the annual canon adds to monthly costs (and can jump sharply when a temporary lease period resets), banks apply stricter mortgage conditions to unfavorable erfpacht terms, and a looming canon reset can depress resale value. Always check the erfpacht status, remaining period, and buyout (afkoop) options before bidding — two identical apartments can differ by tens of thousands of euros in true cost purely because of their lease terms.
Erfpacht (ground lease) is Amsterdam's unique property system where you own the building but lease the land from the municipality. It affects 80,000+ properties and can save—or cost—you hundreds of thousands of euros depending on the contract type.
Quick Summary
- • Erfpacht means you own the building, the city owns the land
- • Canon (annual ground rent) ranges from €500-5,000+ per year
- • Perpetual erfpacht (eeuwigdurend) = fixed canon forever
- • Temporary erfpacht = canon resets every 50 years (can jump 10x)
- • Afkoopsom (buyout) costs €50,000-300,000 to convert to freehold
Perpetual vs Temporary: The Critical Difference
There are two types of erfpacht contracts, and the difference is financially massive:
✓ Perpetual (Eeuwigdurend)
Canon: Fixed forever (e.g., €1,200/year)
Risk: None—predictable costs
Mortgage: Easy to finance
⚠️ Temporary (Tijdelijk)
Canon: Resets every 50 years based on land value
Risk: Can jump from €1,000 to €10,000+/year
Mortgage: Banks hesitant if reset is near
Afkoopsom: Buying Out the Ground Lease
You can convert erfpacht to vol eigendom (freehold) by paying an afkoopsom (buyout sum). Amsterdam offers two calculation methods:
Afkoopsom Calculation (2026)
Key Takeaways
- →Always check the erfpacht type before buying—temporary contracts can explode in cost after reset.
- →Consider buying out (afkoopsom) if you plan to stay 10+ years—it often pays for itself.
- →Banks are cautious with temporary erfpacht nearing reset—expect lower mortgage amounts or higher rates.
