The national government has shifted many tasks to municipalities over the past decades, especially in the social domain. These municipal elections also have a significant impact on entrepreneurs.
The municipality determines where businesses can be located
One of the largest powers of municipalities lies in spatial planning. Municipalities determine through their environmental plan which activities are allowed at a location: housing, industry, hospitality, retail, or a combination of these.
This plan determines, for example:
- where business parks are developed
- whether hospitality is allowed on a street
- how much space there is for shops or offices
- how tall and large buildings may be
Since the introduction of the Environmental Law in 2024, every municipality has an environmental plan with all the rules for the physical living environment. The municipality therefore largely determines where new business activities can arise and where they cannot.
Permits: from business premises to terraces
The municipality is often the competent authority for permits related to entrepreneurship. This varies from building permits to hospitality exploitation permits. Examples of municipal permits include:
- environmental permit for construction or renovation
- exploitation permit for hospitality
- terrace permit
- event permit
- advertising and facade advertising permit
Many of these applications now go through the digital Environmental Desk, where businesses can check which rules apply and can directly apply for a permit.
In practice, municipalities determine how smooth or strict the entrepreneurial climate is.
Local regulations: opening hours, advertising, and events
In addition to national legislation, municipalities establish their own rules in the General Local Regulation (APV). These include rules about:
- opening hours of hospitality
- terraces and street use
- events and markets
- advertising displays
- noise nuisance or lighting
Rules for retail, hospitality, and events are often locally established. The result: the same business may have more space in one municipality than in another.
Enforcement and supervision
Rules only have an effect if they are enforced. Municipalities therefore play a significant role in supervising businesses and environmental regulations, which often come from above. They check permits, enforce environmental rules, and supervise safety and nuisance. In case of violations, they can impose fines or measures.
These tasks fall under the system of permit issuance, supervision, and enforcement (VTH). How strict or lenient this is done often varies by municipality.
Local taxes and business costs
Municipalities also determine part of the costs of doing business through local taxes and levies.
Think of:
- property tax (OZB) for business premises
- advertising tax
- precari tax for terraces or objects on the street
- tourist tax (relevant for hospitality)
- parking policy and permits
Although these revenues only form part of the total burdens, differences between municipalities can be significant, and most parties have very different views on them.
Accessibility and infrastructure
Municipalities are responsible for many practical matters that affect entrepreneurs daily, such as:
- construction and maintenance of roads and bike paths
- design of shopping areas
- parking facilities
- logistical regulations (such as environmental zones or zero-emission zones)
- development of business parks (hey, we just talked about that)
Because municipalities are close to the local situation, they have relatively much autonomy in these kinds of decisions.
For entrepreneurs, this can make the difference between a well-accessible location or a difficult-to-reach area.
Municipal elections more important for entrepreneurs than thought
In Dutch governance, the principle "decentralized unless" applies: tasks are assigned as much as possible to local authorities. This means that municipalities are often the first government that entrepreneurs encounter.
Municipalities determine where businesses can establish themselves, which permits are needed, how strictly rules are enforced, and how a city or village is economically organized.
Therefore, entrepreneurs looking at the elections should not only look at parties but especially at their vision on issues such as space for business activities, permit policy, accessibility, and local burdens.
What exactly is happening in your municipality, we cannot pinpoint precisely. With this information, we hope that you can get started with what you really find important, and thus make a well-informed choice. The only thing left to do: go vote!
