For many properties in Amsterdam, you may own the house but not the land it sits on. In such cases, the land is leased from the municipality under a system called erfpacht (leasehold). The annual fee you pay for this right is called erfpachtcanon—or ground rent.
This amount is typically tax-deductible. Note that not all leaseholds are municipal; there are also private leasehold arrangements, where a private party owns the land instead of the municipality. Private leaseholds can be harder to finance and may affect the property’s future resale value.
