Because of the very strict building / housing laws in the Netherlands, it is almost impossible to (legally) live in a tiny house here. But it's possible to live a 'tiny house lifestyle', also when you live in an 'ordinary' house or apartment. In his blog 'so chicken' Jelle tells about it (in Dutch). https://sochicken.nl/tiny-house . This is what we try, living in a ground-floor 2-bedroom-apartment.

https://www.facebook.com/tinyhousenederland is the FB community of tiny-house-lovers in the Netherlands. It's started by Marjolein. She has a blog too in which she tells about the progress of her own efforts to start living in a tiny house: http://www.marjoleininhetklein.com/tiny-house-wat-is-dat/

Greetings from the Netherlands, Inge.

Wat mij betreft valt er in Nederland überhaupt niet te leven... Having said that, i'm reminded of a story, i'm pretty sure by Larry Santoyo, of some guy in Hawaii interested in him building a straw bale house there. He explained there's no point; it is wonderful stuff but inappropriate for the challenges of Hawaii. I mention that because i see no point in building a house in the middle of the Sahara desert; i'm talking dunes, where no rain ever falls. Whatever one builds there, it is inappropriate. Sustainability is impossible there. For different reasons the Netherlands are comparably challenging.
For all intents and purposes sustainability is impossible in nearly the whole of the Netherlands. For U.S. readers, imagine Delaware filled with 17,000,000 people... Denmark, which is 90% the size of the Netherlands, only contains 3 million, just to give it some more perspective.
The Netherlands are a country so locked down by legislation, rules ,restrictions of all kind, and governmental scrutiny that it's like doing permaculture in New York City. As they say: location location location; tiny houses are amazing and i personally love them, but what's the point of tiny houses, straw bale houses, or a castle when the location it's situated at is unsustainable? I guess there's one possible merit to the idea: practice for when you finally get to a reasonable location.

Hi 'Socrates'. Thank you for giving your opinion so freely!
Of course you are right, the Netherlands is a country so small and with such a large population, it doesn't have the possibilities of (f.e.) the United States or Australia. You compare it to the city of New York. I think that is exaggerated, but in some ways ... Better compare it to other large cities, maybe San Francisco, or Ontario (Canada). Also in such large cities permaculture exists! It's a challenge, but it isn't impossible!

When someone thinks of the Netherlands, mostly he thinks of Amsterdam or Rotterdam. Those are crowded, but also there are permaculture initiatives. And then, the Netherlands as a whole are larger than only Holland (the crowded western part). In the eastern and southern regions permaculture is growing. There are 'urban' projects, like in Nijmegen and Groningen, and there are farmers doing the transition to permaculture in the provinces of Friesland and Noord-Brabant (and more I think).

Changes here always come later (and on a smaller scale) than in the USA. But you can't say it's impossible here. B.t.w. you mentioned the Sahara ... don't you know the project 'greening the desert'? For permaculture nothing is impossible.