Moving abroad temporarily? How to rent out your home safely and legally
More and more people are moving abroad temporarily — for work, a sabbatical, or an extended trip. But what should you do with your home while you are away? Selling may feel too permanent, yet renting it out is no longer as straightforward as it once was. Fortunately, there is an excellent legal solution: an interim tenancy agreement with a diplomatic clause.
In this article, we explain how it works, what your options are, and what you should be aware of.
The Fixed Tenancy Agreements Act: temporary letting is no longer straightforward
Since 1 July 2024, the Fixed Tenancy Agreements Act (Wet vaste huurcontracten) has been in force. The core principle of this legislation is that permanent tenancy agreements are now the standard.
Entering into a temporary tenancy agreement with a fixed end date — a common practice until mid-2024 — is no longer permitted in most situations. As a result, tenants generally receive full tenancy protection from day one and cannot simply be required to leave at the end of a rental period.
For homeowners planning to spend time abroad, this may sound problematic. And in many cases, it is — unless you make use of the specific legal exception created for this situation: the interim tenancy agreement.
What is an interim tenancy agreement?
An interim tenancy agreement, often referred to as a tenancy agreement with a diplomatic clause, is a special form of temporary letting that remains valid under the Fixed Tenancy Agreements Act. Its legal basis can be found in Article 7:274 paragraph 2 of the Dutch Civil Code.
The principle is straightforward: the agreement explicitly states that you intend to return and occupy the property yourself after a specified period. The tenant therefore knows in advance that the tenancy is temporary and that the property will be reclaimed once you return.
The property may even be rented to multiple successive tenants, provided the correct legal procedure is followed each time.
The term “diplomatic clause” is somewhat misleading, as you do not need to be a diplomat. The arrangement is available to any homeowner who is temporarily living abroad and intends to return to their property at a later date.
When can you use an interim tenancy agreement?
An interim tenancy agreement is particularly suitable in the following situations:
Temporary residence abroad — for work, an overseas assignment, an extended trip, or a sabbatical. You do not wish to sell your home, but neither do you want it to remain vacant for years.
Guaranteed return — you intend to move back into your home and occupy it yourself after a specific period.
Financial support — rental income helps cover mortgage payments while you are living abroad.
The legal requirements: what you need to comply with
An interim tenancy agreement is legally sensitive. If the legal requirements are not met, you may lose the right to reclaim your property upon your return, leaving the tenant with full tenancy protection.
The most important requirements are as follows.
1. A fixed-term tenancy agreement
The tenancy agreement must be entered into for a predetermined period. An open-ended tenancy agreement is not valid when using a diplomatic clause.
2. A contractual vacancy clause
The tenancy agreement must contain an explicit clause stating that the tenant will vacate the property once the landlord returns and the tenancy has been validly terminated.
3. Timely and correct termination
The agreement does not end automatically. As the landlord, you must actively terminate the tenancy by registered letter or through a bailiff's notice.
The statutory notice period is at least three months, increased by one additional month for each full year the tenant has occupied the property, up to a maximum of six months.
4. Personal occupation upon return
When you return, you must genuinely occupy the property as your own residence. Renting it to another party or using it for a different purpose is not permitted.
5. Tenant consent for extensions
If you decide to extend your stay abroad, the tenancy period can also be extended, but only by mutual agreement and before the original term expires.
An automatic or tacit extension can have serious consequences, as it may invalidate your right to rely on the diplomatic clause. It is therefore important to discuss any extension well in advance and seek professional guidance throughout the process.
Do not forget your mortgage lender
If your property is subject to a mortgage, there is an additional step that many homeowners overlook.
Most mortgage deeds contain a rental prohibition clause that prevents letting the property without prior consent. Renting out your home without permission may give the lender the right to demand immediate repayment of the mortgage.
You should therefore always obtain written approval from your mortgage lender before renting out the property.
Each lender applies its own conditions, but generally:
The rental period may not exceed the duration of your stay abroad, subject to a maximum period determined by the lender (often up to 36 months).
You must be able to demonstrate that you can continue meeting your mortgage obligations.
Your buildings insurance policy must cover the rental situation, so it is important to verify this with your insurer in advance.
Tax considerations
Temporary letting can also have tax implications.
Depending on your circumstances, the property may remain classified as an owner-occupied home in Box 1, or it may move to Box 3 as an investment property. The outcome varies from case to case and can have a significant impact on your tax position.
For this reason, we recommend obtaining advice from a financial adviser before proceeding.
Let a professional guide you through the process
An interim tenancy agreement provides an excellent and fully legal solution for homeowners who are leaving the country temporarily. However, the legal requirements are strict.
A mistake in the clause, an incorrect notice period, or an unintended extension can result in losing your right to reclaim the property when you return.
We are happy to guide you through the entire process, from drafting the correct tenancy agreement with a diplomatic clause to liaising with your mortgage lender and handling the termination process when you return.
Are you moving abroad temporarily and would like to rent out your home safely and with confidence? Contact us for a no-obligation consultation.