What is a VvE and how does it work in the Netherlands?

When you purchase an apartment in the Netherlands, you automatically become a member of the VvE (Vereniging van Eigenaars). Because this type of homeowners’ association does not exist in many other countries, the concept can be confusing—particularly for international buyers.

A VvE is a legally established association of apartment owners responsible for managing the shared parts of the building. This includes maintenance, finances, insurance, and internal rules. All members are legally required to pay monthly VvE contributions to ensure that the building is properly maintained and financially secure.

VvE management and monthly costs

To reduce the administrative burden on individual owners, many VvEs appoint a professional management company. A VvE management firm typically handles tasks such as administration, budgeting, collecting owner contributions, organizing general meetings (AVL), and coordinating maintenance and repairs.

The cost of VvE management usually ranges between €20 and €80 or more per owner per month, depending on the size of the building and the scope of services provided.

How is the VvE budget calculated?

Dutch law requires every VvE to maintain a reserve fund. This reserve fund can be calculated in one of two ways:

• Based on a Multi-Year Maintenance Plan (MJOP) covering a period of at least ten years, or
• By setting aside 0.5% of the building’s rebuilding value, as stated in the building insurance policy (opstalverzekering).

In addition to the reserve fund, the building must be adequately insured against damage. The VvE is also legally required to be registered with the Chamber of Commerce (KvK), hold a general meeting (Algemene Ledenvergadering – AVL) at least once per year, and maintain properly documented financial statements.

Other services—such as cleaning or gardening—are optional and typically depend on the size of the building and agreements made by the owners.

How decisions are made within a VvE ?

At VvE general meetings, decisions are made through voting. However, voting power does not depend on the number of people present. Instead, decisions are based on the distribution of ownership shares within the building.

These shares are usually determined by the size of each owner’s apartment and are recorded in the deed of division. As a result, owners with larger apartments typically have more voting power than those with smaller units.