Erfpacht: Dutch ground lease (2026)
With erfpacht (ground lease) you own the building but not the land underneath — you lease the land from the municipality or a private owner and pay an annual fee called the canon. It's common in Amsterdam and parts of other cities. The canon can be paid yearly, or bought off (afgekocht) for a set period or in perpetuity (eeuwigdurend). An unpaid canon is a real recurring cost that renting avoids and that lowers what a lender will finance.
How the canon works
If the ground lease isn't bought off, you pay an annual canon that is periodically reset — sometimes sharply — based on land value. If it is bought off for the current period, you owe nothing until that period ends; if it's eeuwigdurend afgekocht (bought off forever), you never pay canon again. Always check the deed to see exactly what you're buying.
Amsterdam is the big case: most of the city is on municipal erfpacht, and the switch to a perpetual system (eeuwigdurende erfpacht) means the terms vary a lot by property and by when the owner made the switch.
What it means for buying vs renting
A live canon is a cost only owners carry, so add the annual amount in the calculator — it eats into the case for buying. A property with the canon bought off in perpetuity behaves like freehold for the maths. Either way, know the status before you bid: it changes both your monthly cost and your resale value.