The fines that Amsterdam residents have to pay if they are caught illegally renting their apartments to tourists are disproportionately high, the Council of State decided.

The highest Dutch administrative court has stated that the fines imposed by the city of Amsterdam for violations of the rules do not sufficiently take into account the difference between private and commercial rentals, nor whether it is a first offense or how serious the offense is.

This lack of nuance is important, the court said, because fines in Amsterdam are relatively high. The city has now been told that it cannot impose new fines until it has worked out a new, fairer system.

The case was brought by an Amsterdam woman who was fined 11,600 euros for renting her apartment to five tourists. The city allows a maximum of four tourists.

Although the court ruled that the woman should be fined for her breach of the rules, given the magnitude of the offence, an amount of 2,900 euros was more appropriate.

In July 2020, the city introduced a vacation rental permit system that requires residents to register each visit with the city and sets an annual cap on private home rentals of 30 nights per year.

Last year, the court ruled that Amsterdam had acted wrongly in banning holiday rentals in parts of the city centre because it had failed to look for alternatives.