;

Sustainability increasingly more important


Following from both national and EU law, such as the Energy Efficiency Directive, stricter requirements apply in respect of new building energy consumption, usage, maintenance and multi-functionality. Combined with higher market standards and energy transition, this leads to growing interest in the redevelopment or transformation of existing buildings.

Stricter European climate legislation and a clear definition of Environmental Social and Governance factors (ESG) will dictate whether there is appetite for a development product. Real estate investors adapting quickly to the new requirements, will have access to more capital. With supply of new real estate being scarce, vacancy rates are slowing down, rents are higher and discount interest rates are decreasing.

As with all alternative investment funds, real estate funds show an increasing focus on the ESG effects of investments. It is therefore vital that real estate funds make sustainable investments when they are marketed as such. For this to happen, the  European legislator has, among other things, implemented the Sustainable Finance Disclosure Regulation (SFDR). Read more on ESG.

As of 2023, the Environmental and Planning Act is expected to enter into effect, introducing a new reality for development regulations. This act revises the rules on zoning plans, environmental activities and permits. It will undoubtedly lead to administrative complexities – especially if municipalities are not ready to implement the new regulations.

Podcast
Tackling

How ESG contributes to sustainable investment futures

Podcast
How ESG & corporate purpose contribute to a sustainable investment future
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Tax related trends: ATAD3 and Pillar Two


Under the proposed ATAD3 EU Directive, European entities with insufficient substance or a European entity largely (>60%) holding foreign real estate, will qualify as a ‘shell’, potentially resulting in adverse tax consequences. The legislation becomes effective in 2024, with a two-year review period and will be applicable to both new and existing structures. Read more on ATAD3.

It is expected that Pillar Two will come into force as per 2023. Groups with a turnover exceeding the EUR 750 million threshold will become subject to a minimum effective tax rate of 15%. As it stands, Investment Funds or Real Estate Investments Vehicles that function as an Ultimate Parent Entity classify as excluded entities and are therefore not subject to Pillar Two. However, a lot remains uncertain and future restructuring options may be limited, given the ambitious timeline for implementation. Read more on Pillar Two.

To align with international standards, the Dutch government announced an overhaul of the tax classification rules for Dutch and foreign entities. While it remains unclear when the new rules will become effective, the legislative proposal is scheduled for the third quarter 2023. Read more on this trend.

Changing housing needs & requirements


Prompted by the low availability of large-scale new build projects and propositions from developers, (institutional) investors are showing an increasing appetite for turnkey transactions with forward funding. In the residential market in particular, this is happening by means of share deals. Increasing interest can also be seen in housing, particularly for senior citizens and with healthcare provision. At the same time, there is a high demand for logistic centres and data centres.

Due to the limited availability of (social and mid-market) housing in the Netherlands, national and local governments are limiting the freedom to buy and let houses. One increasingly active restriction is the ‘buy-to-let’ prohibition, where it is – in short – prohibited to buy a house in a certain category or price range for the purpose of letting it to another party.

Additionally, municipalities often require a minimum amount or percentage of social or mid-market housing in housing unit developments, in exchange for cooperation or approval.

Budget Day 2022: How will new and revised fiscal rules impact you?
Budget Day 2022: How will new and revised fiscal rules impact you?
Budget Day puts forward new and revised tax packages. Would you like to know how these fiscal rules in the Netherlands will impact you, your clients or your business in 2023?
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Budget Day 2022: How will new and revised fiscal rules impact you?

On this page our legal and tax experts provide compelling insights in the lead up to Budget Day and their initial analysis directly after the budget plan is presented.

20-09-2022

On Budget Day 20 September 2022, the Dutch government sent the Tax Plan 2023 and several other bills to the Parliament.

Substance & Tax Law

In recent years tax authorities have placed more emphasis on combatting the use of abusive and aggressive tax structures by companies operating across borders, to ensure fair taxation.

The European Commission recently issued a new proposal (ATAD 3). It is highly recommended that taxpayers assess the possible impact of the proposal and consider opportunities for strengthening their local footprint and/or restructuring.

13-07-2022

In a Decree of 8 July 2022 the State Secretary of Finance withdraws the approval for the application of the exemption method for board member and supervisory board member fees.

ESG & Sustainable Investment

Sustainability is becoming an increasingly important factor in the decisions of investors, companies, consumers, shareholders and policy- and lawmakers. The broadly supported awareness for the Environmental Social and Governance (‘ESG’) objectives is reflected in many international voluntary standards as well as in an increasing number of European regulations to mobilise financing for sustainable growth.

11-07-2022

Over the past years, international attention for sustainability and responsible business has increased. As a result, environmental, social and governance (ESG) topics have gained a prominent position

ATAD2

The anti-hybrid mismatch rules of the EU Anti-Tax Avoidance Directive (ATAD2) aim to prevent situations of a double deduction and a deduction without a corresponding inclusion of the income at the level of the recipient resulting from a hybrid mismatch. All EU Member States have implemented ATAD2 in their domestic laws as from 1 January 2019 (for Belgium) or as from 1 January 2020 and 1 January 2022 (for a.o. the Netherlands and Luxembourg).

05-03-2021

Following the second EU anti-tax avoidance directive, the further implementation of the reverse hybrid rule entering into force as of 2022.

Implementing Pillar One & Pillar Two

To adapt international tax rules to an increasingly digitalised economy, the OECD/G20 Inclusive Framework proposes a two-pillar overhaul of the existing system as from 2023/2024. Tax directors and their teams can already model the impact and assess opportunities for manageable restructurings to mitigate the increased complexity.

22-09-2022

The new edition of the EU Tax Alert is available. With this publication we would like to keep you informed about the latest developments on EU tax law.

COVID-19

The implications of the COVID-19 pandemic reach across borders, industries, and legal disciplines. That is why Loyens & Loeff has set up dedicated expert teams - to offer you an integrated answer to all your legal and tax questions related to the coronavirus outbreak.

15-10-2021

Op 12 maart 2020 werd door het kabinet aangekondigd dat vanwege COVID-19 iedereen die daartoe in staat was de komende twee weken thuis moest werken.

Reform of Belgian property law

In the Book 3 "Goods" of the Civil Code the main goal of the legislator was to better structure, modernise and integrate the law on goods into a single code. Moreover, the new law on goods had to be functional, useful and flexible.

26-11-2021

This contribution examines the new provisions of Book 3 on usufruct, ground lease and building lease that are relevant to commercial real estate transactions. From a practical point of view, the most

How we can help

Making well-informed strategic decisions about your real estate portfolio demands an understanding of the wider range of industry challenges. We are involved in many of the new developments in the real estate industry. Whether you are involved in project development, construction, real estate transactions, asset management or funds and platforms - Loyens & Loeff is your go-to firm for top notch law and tax advice.

We are there to give advice, to implement, and – if necessary – to go to court, across our home markets in the Netherlands, Belgium, Luxembourg, and Switzerland. If your real estate investments are located outside our home markets, we connect you with the most suitable parties via our global partner network. Since our firm operates independently, we can select the best possible partner in each market to work seamlessly with. This means we can guarantee optimal quality, wherever you go.

With integrated knowledge, tailored to our clients’ needs, our dedicated team will ensure a successful outcome of any type of real estate project.
As an international organisation, you face many challenges, from ever-changing regulations to complex cross-border transactions and beyond.
Effectively managing your indirect tax position and remaining competitive while avoiding risks.
With an integrated approach that sets us apart in the market, we offer our clients a unique combination of legal, tax and regulatory advice.
Our litigation teams focus on the most appropriate form of dispute resolution, in and outside of court, from arbitration to mediation. Always looking for the best possible outcome.
Ever-changing government regulations has meant that dealing with the authorities has become an increasingly important aspect of business life.
Ever-changing market conditions require businesses to regularly assess their debt structure
We offer integrated services, in collaboration with both our attorneys-at-law and civil-law notaries.
Book "Investing in real estate in the Netherlands"
Book "Investing in real estate in the Netherlands"
This book provides foreign companies that invest in Dutch real estate with an understanding of the main legal and tax issues that may arise during such an investment. A (free) hard or soft copy of the book can be requested.
Book "Project development & construction in the Netherlands"
Book "Project development & construction in the Netherlands"
Adequate advice on real estate projects requires input from and good coordination between lawyers, tax advisers and civil-law notaries. Therefore, our new publication offers a handy and useable overview of the most important legal and tax aspects.
Ahead of the game in real estate: we can support you in realising your ambitions

Our firm is known for its integrated law and tax advice. We are used to working together and approaching projects in a multidisciplinary way. Being able to assist our clients both on legal and tax matters, we provide our clients with first class service and smart solutions at a one stop shop.

For many years this formula has proven to be a success, which is demonstrated by our steady client base and is evidenced by our continuous tier 1 rankings in various legal guides as well. 

Project timelines at Loyens & Loeff are short, thanks to the number of specialists and the amount of expertise and experience within our firm. It is in our nature to get things done efficiently. Once a new project arises, lots of things must happen all at once.  Due to the size of our (multidisciplinary) team, things never stand still and if necessary, we can scale up quickly.

Climate responsibility – and more broadly ESG – is of increased importance, also for real estate investors, financiers and occupiers. Our real estate experts are aware of all sorts of (EU) regulations and assist many clients in their ambition to improve the sustainability of existing assets or building new future proof assets.

As an example, we are the market leader in the development of roof solar projects on logistic properties. Our advice includes tax arrangements and cooperation with Energy Service Companies (ESCo’s) and energy suppliers, e.g., for underground thermal energy storage.

Thanks to our many years of experience, we are ahead of the game. We know what is going on, often before others do. This enables us to identify business opportunities for our clients at an early stage.

With a vast track record in inner-city development, including high-rise and mixed-use projects, we know the ins and outs of these projects. They often require specific regulation, municipality guidelines and agreements. Handling these complexities and challenges is day to day business for us and the many parties we work with.

What others say

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"The team as a whole is highly experienced and has tier-one knowledge on a wide range of legal and tax matters."

Cham­bers Eu­rope (2021)
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“The lawyers implement experience and knowledge pragmatically & efficiently."
Chambers Europe (2021)
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"The best firm in the Netherlands for real estate matters."
Chambers Europe (2021)
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"The team has excellent commercial awareness and consistently delivers excellent service."
Chambers Europe (2020)
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"They make a reliable team to work with and are a very important source of information for us."
Chambers Europe (2020)
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“The firm has a large engine room and always has sufficient capacity, which is important in a fast-moving market. I can depend on them and if I need them urgently, they are there."
Chambers Europe (2019)
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"Lawyers have a pro-active and solution-oriented attitude. The team has an all-encompassing approach and a strong tax expertise, which is combined with real estate."
Chambers Europe (2019)
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"Very responsive team with great understanding of the real estate issues."
Legal 500 (2021)
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"One of the largest real estate practices in the Netherlands. A real one stop shop."
Legal 500 (2020)
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"Loyens & Loeff: a one stop shop. Performed a dedicated job with a big team on a complex transaction with many disciplines involved."
Legal 500 (2020)
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"The team is huge and has the capacity to deal with the big transactions. It is acclaimed for the breadth of its knowledge, its network, and 24/7 mentality.”
Legal 500 (2019)
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“Once again, Loyens & Loeff heads PropertyNL’s listings of the top 40 real estate law firms in the Netherlands. Loyens & Loeff is a true market leader in the Netherlands.”
PropertyNL (2021)
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“Clients laud the department for its commercial acumen, one highlighting its very pragmatic and business-friendly approach."
Chambers Europe (2021)
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“The team makes a real effort to understand what we need on a daily basis."
Chambers Europe (2021)
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“Lawyers are very up to date in their understanding of the Dutch financial services regulator. They have set up or advised many Dutch funds, so have very good overview of what are acceptable conditions for the national authorities.''
Chambers Europe (2020)
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"The team creates a true partnership with their clients, is very approachable and has a good understanding of the practicalities of fund structuring."
Chambers Europe (2019)
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"The department offers excellent assistance. Lawyers are well informed and well equipped to help with AIFMD."
Chambers Europe (2019)
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"Excellent service and availability. Speed is key in our field and they deliver.”
Legal 500 (2020)
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"Loyens & Loeff's team has an excellent level of expertise, better connections with local tax and financial markets authorities than many others and is very experienced and up-to-date on international and cross-border issues."
Legal 500 (2019)
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“Loyens & Loeff has a well-regarded practice advising clients on corporate and real estate finance matters, with notable experience acting on acquisition finance.”
Chambers Europe (2022)
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“Loyens & Loeff remains one of the Netherlands’ premier firms for residential mortgage-backed securities matters, with a client list that includes challenger banks beginning to invest in the mortgage space, as well as large financial institutions.”
Legal 500 (2022)
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“Excellent response times, huge expertise and user friendly.”
Legal 500 (2022)
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“Good knowledge of the real estate lending industry; understands our needs and requirements."
Legal 500 (2020)
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"Loyens & Loeff has a lot of knowledge and expertise in the field of real estate and has a lot of experience in the field."
Chambers & Partners Europe (2022)
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"We choose Loyens & Loeff since it is the best firm in the Netherlands."
Chambers & Partners Europe (2022)
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“L&L has a lot of knowledge and expertise in the field of real estate and has a lot of experience in the field of takeovers of such projects.”
Legal 500 (2022)
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“They are absolutely top of the bill.”
Legal 500 (2022)
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“Always contactable, dedicated, professional and extremely hard working.”
Legal 500 (2022)
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“As the sole attorney responsible for my Fortune 100 company’s real estate globally, I have managed projects in approximately 40 countries and 35 states in the US; Loyens & Loeff is among the very best firms with which I have worked.”
Legal 500 (2022)
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“The firm is extremely responsive, brings consummate legal knowledge to the table, works very collaboratively and always helps to find creative solutions to problems in transactions.”
Legal 500 (2022)
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“Best in the market from a professional standpoint.”
Legal 500 (2022)
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“The attorneys are very personable and genuinely good people — in my experience they genuinely care about the client, and they quickly learn and operate with a view to the quirks and peculiarities of the client company.”
Legal 500 (2022)
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