Terrace tax in Amsterdam has risen sharply, will a whistle soon cost 5 euros?

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Catering entrepreneurs in Amsterdam are concerned about the terrace tax. Many pub owners and restaurateurs are faced with a double increase this year compared to the previous rate. And while terrace owners in some other places, such as The Hague, pay nothing at all.

The tax rates in the capital differ per district. In the center, the most expensive area, it is about 170 euros per square meter. Entrepreneurs with large terraces can achieve total amounts of 20,000 euros or more, while they earlier paid less than 10,000. “Absurd” amounts, says Pim Evers of the trade association Koninklijke Horeca Nederland.

It’s not about bullying catering entrepreneurs.

Councilor Hester van Buren

Amsterdam actually wanted to gradually increase the levy over a period of a few years. But during the corona years, the terrace tax was temporarily abolished, which means that entrepreneurs now have to deal with a significant increase at once.

The municipality emphasizes that the tax increase was announced well in advance and is also urgently needed. “It is not about bullying catering entrepreneurs,” says councilor Hester van Buren (PvdA). “The point is that we have scarce public space.”

Other cities

Municipalities are allowed to decide for themselves how much terrace tax they levy, which results in major differences. Utrecht charges catering entrepreneurs 58 euros per square meter, in Rotterdam the first 50 square meters are tax-free, and in The Hague and Lelystad, terrace owners pay nothing at all.

“Terraces contribute to livening up the city,” says a spokesperson for the municipality of Lelystad. By not charging terrace tax, the municipality wants to accommodate entrepreneurs.

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In Hoorn the terrace tax is 44 euros per square meter. The North Holland port city did not or hardly increase rates last year, just like many other municipalities. But the question is how long they can keep that up. Councilor Axel Boomgaars (GroenLinks) points out that municipalities will have to make significant changes from 2026 get less money of the Kingdom.

“Then you have to choose: are we going to increase our tourist tax, terrace tax or property tax? Or are we going to cut subsidies for culture, sports clubs or people with a minimum income? That is of course a painful story.”

A beer at restaurant d’Oude Waegh in Hoorn costs “only” 3.50 euros, says catering boss Frank Wiese. “In Amsterdam it will now be 4.5 or 5 euros.”

Too many tourists

Evers from trade association Koninklijke Horeca Nederland fears that catering businesses now have little choice but to raise their prices. 5 euros for a whistle? “Those are prices we are not hoping for.” Sports clubs also suffer from the higher terrace tax, writes Het Parool. The clubs would already be forced to increase contributions.

Amsterdam will receive an estimated 20 million tourists this year. The city council thinks that is too much and took two years back measures, such as bringing forward closing times for catering and limiting river cruises.

Councilor Van Buren emphasizes that the terraces are on public, municipal land. “If people want to make money with this, I also think it is reasonable if a fee is paid for this. And we use the money we raise to keep everything accessible: cleaning the square, encouraging cultural facilities.”

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The catering entrepreneurs from the capital want to take action. It is still unknown what exactly that protest will look like.

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