Step-by-step plan: Starting a shisha lounge
Do you want to start a shisha lounge or are you taking over an existing shisha cafe? Then you will have to deal with rules and obligations. No tobacco is allowed in your shisha lounge, and you must have the appropriate permits. Read how to comply with the rules.
What is a shisha lounge?
A shisha (also called a water pipe or hookah) is a device with which flavoured pipe tobacco, herbs, or vapour stones (steam stones) are smoked. A shisha lounge is a place where customers can smoke shisha for a fee.
You can only start a shisha lounge in a location where hospitality businesses are allowed. You can check this in the environment plan of your municipality.
Please note: Just because hospitality businesses are permitted does not automatically mean that you are allowed to run a shisha lounge. The municipality decides whether this is appropriate for the area. A shisha lounge is not included in the environment plan. So, always contact your municipality before you start.
Check the environment plan and request changes
You can check environment plans via the Environment and Planning Portal (Omgevingsloket in Dutch). If your plans do not fit with the environment plan, you can apply for an exemption. If you are unsure exactly which permit you need to apply for, try the permit check (in Dutch).
There is a lot to consider when starting or taking over a company. In a business plan, you describe what your plans are and how you will make a profit.
Read what steps you need to take before you start.
Choose a business name and a legal structure, and register with the Netherlands Chamber of Commerce KVK.
Hospitality sector glossary
You will encounter all kinds of terms when starting a hospitality business. KVK's Hospitality sector glossary lists the Dutch and English terms and explains their meaning.
You need an operating permit for a hospitality establishment (exploitatievergunning horecabedrijf) if you start a shisha lounge – just like a hotel, cafe, or restaurant. Apply for the operating permit from the municipality where you want to start the shisha lounge.
Do you already have a restaurant or cafe, and do you also want to offer shishas? Contact the municipality. They will tell you if you must apply for a new operating permit or have the current permit changed.
Permits when taking over a shisha lounge
If you take over an existing shisha lounge, you do not always automatically take over the current permit. Check with your municipality.
Getting an operating permit: your municipality decides
Each municipality has a different way of deciding if you will receive a hospitality operating permit.
Your municipality decides:
- How many permits are possible for shisha lounges within a (sub-)municipality.
- How the licence is issued (for example, in order of application, or by public lottery).
- What the permit looks like, for example with a mention of 'shisha' on the operating permit. Or adding 'shisha' as a permitted business activity for your catering business.
When smoking a water pipe, harmful substances are released, such as tar and carbon monoxide (CO). High carbon monoxide levels are dangerous for your employees and your guests. So, you must have a good ventilation system. Have this system installed by a professional company. Also install a CO meter. The CO meter alarm warns if there is too much carbon monoxide in the air.
Avoid fines and the loss of your permit
Supervisors monitor how much carbon monoxide is released in your shisha lounge. If it is too much and you do not take the right measures, you could be fined and/or lose your permit. You must then close your shisha lounge.
Find out how you can prevent carbon monoxide poisoning (in Dutch) in your shisha lounge.
Smoking tobacco indoors is not allowed
Your guests are not allowed to smoke tobacco (with or without nicotine) inside your shisha lounge. This is set out in the Tobacco and Smoking Products Act. You may, however, offer a water pipe with herbal smoking products or with steam stones.
Do you want to have a terrace (an outside seating area) at your shisha lounge? Then you usually need a terrace permit (terrasvergunning). You can apply for a terrace permit from the municipality. Your guests are allowed to smoke shisha with tobacco outdoors on the terrace. The terrace must be fully open on at least 1 side.
You must prevent noise pollution. There are various ways in which you can do this. These include, for example, insulating walls, fitting soundproof glass, and turning the music down. Your municipality may also ask you to provide a noise assessment report.
Do you expect to make more noise than usual? For example, with live music? The municipality can set specific rules for noise. Such as different noise standards during specific festivities. Contact your municipality to make arrangements.
You must follow the closing times for the hospitality sector in your municipality. You will sometimes find the rules on opening hours set out in the environment plan. The general municipal bylaw of your municipality may also contain rules about opening times. Do you want to be open longer? In that case, you must apply to the municipality for dispensation from closing times.
As owner of a shisha lounge, you pay municipal taxes and levies. For example, waste collection and sewerage charges.
Tax on tap water to increase
From 1 January 2027, the tax on tap water (Belasting op Leidingwater, BoL) will rise by €0.11 to €0.551 per m3.
Also, large-scale consumers will be liable for tax on every cubic metre of drinking-water-quality tap water they use. Currently, you only pay tax on the first 50,000 m3 you use. This tax ceiling will disapper from 1 January 2027.
Read more about this change in the tax on tap water.
As the owner of the shisha lounge, you are responsible for fire safety and prevention. A water pipe can cause a fire in your business. The coals used can burn for a long time.
Permit for fire safety
For some buildings you need an environment and planning permit (omgevingsvergunning) for fire safety measures. Sometimes you have to report a usage notification to the municipality for fire safety measures. You can check if you need a permit or only need to submit a usage notification via the Environment and Planning Portal (Omgevingsloket, in Dutch).
Will you serve alcohol in your shisha lounge? Then you need an alcohol licence. Read which requirements you must meet.