On 1 January 2027, the Dutch ‘Wet Modernisering Servicekosten’ (Service Charges Modernisation Act, the Wms) will take effect, along with the revised ‘Besluit Servicekosten’ (Service Charges Decree) and the new ‘Regeling servicekosten’ (Service Charges Regulation). This three-part framework specifies which items and services a landlord may pass on as service charges and makes it easier to determine service charges in practice. An exhaustive list defines what constitutes service charges. In doing so, the Wms eliminates the “open standard” of Article 7:237(3) of the Dutch Civil Code (DCC). In this article, we outline the changes and their practical implications.
Current system
The current Article 7:237(3) DCC states that service charges are defined as “the compensation for other goods and services provided in connection with the occupancy of the dwelling. By Order in Council, goods and services may be designated for which the compensation must be classified as service charges.” In this