First-round leader Jimenez, who won the tournament in 1994, shot a bogey-free 67. The co-leaders are at 9-under totals of 131.
"This course suits me," said Jimenez. "It's not a very long course but you have to have the ball in position."
The 49-year-old veteran is chasing his 20th European Tour title.
Larrazabal briefly held the outright lead before he bogeyed the 16th.
Three-time champion Simon Dyson matched the course record at the Kennemer Golf & Country Club with a 63 to join fellow Englishman Oliver Fisher and Julien Quesne of France in a tie for second -- one shot behind the leaders.
Dyson won two of his titles in the Netherlands on the links-like Kennemer course overlooking the Dutch North Sea coast, while the third came in Hilversum.
"I've done well in previous years and played well around it today," he said of the course. "I played really solid apart from the last two holes and never looked like making bogey."
So far, his only dropped shots of the week came on the par-4 first hole of the first round, which he double-bogeyed.
Jorge Campillo of Spain also shot a 63 -- which included six birdies on the front nine -- and is in a tie for seventh at 6 under. He was in position to set a new course record, but three-putted for bogey on the 18th.