Inheritance tax in the Netherlands
In the Netherlands , inheritance tax is levied on an acquisition due to death and gift tax is levied on a gratuitous gift between the living. With effect from January 1, 2010, inheritance and gift taxes were comprehensively reformed.
Tax liability
Inheritance tax is levied as inheritance tax according to the Succession Act of June 28, 1956, most recently revised on December 15, 2009, i.e. the tax is based on the acquisition and the tax payer is the heir. The same applies to gifts, but where the giver is also responsible for paying the tax in addition to the recipient. With the reform of 2009, inheritance and gift tax law were simplified, the tax exemptions increased and the tariffs partially reduced. A transfer of ownership tax, which mainly affected foreign assets held in the Netherlands, was abolished.
The acquisition of anyone who was resident in the Netherlands at the time of his death or, if he was a Dutch citizen , did not move from the Netherlands more than ten years ago is subject to inheritance tax .
Any gift made by a donor resident in the Netherlands or a former resident donor is subject to gift tax for one year after their departure or ten years afterwards if they are a Dutch citizen.
estate
The deceased's entire domestic and foreign assets belong to the estate. Donations made by him within 180 days of his death are included. Life insurance policies are also added if the testator has paid the premiums, as well as - without a time limit - such gifts for which the testator had reserved the lifelong usufruct. The items in the estate are generally valued at their market value. Owner-occupied apartments are valued at the tax value set by the municipalities.
The testator's debts as well as debts incurred on the occasion of death (inheritance debts) are deducted from the estate value. The same applies to gifts.
Tax partner term
From January 1, 2010, the term partner will be determined for tax purposes as follows:
Partners are all married persons and persons registered as partners of equal status.
Others are treated as partners if they meet the following characteristics:
- Both are of legal age.
- They run a common household in personal community.
- They have recognized their mutual maintenance obligations in a notarial deed.
- They are not directly related by blood.
- They do not form a community of more than two people.
If the people live together for at least five years, there is no need for a notarized maintenance agreement.
Tax classes and tax rates
A distinction is made between two tax classes, and tax class 1 is also divided. A separate tax bracket for close relatives such as siblings, uncles and aunts has been abolished.
- Tax class I : partners and children
- Tax class Ia : grandchildren, great-grandchildren
- Tax class II : all other persons
The tax rates shown in the table below must be paid within the tax classes mentioned.
| Inheritance | Tax class I | Tax class Ia | Tax class II |
|---|---|---|---|
| up to € 118,000 | 10% | 18% | 30% |
| over 118,000 € | 20% | 36% | 40% |
Allowances
The following allowances (2019) are granted:
- Partner: € 650,913
- Children and grandchildren: € 20,616
- sick and disabled children: € 61,840
- Parents: € 48,821
- Others: € 2,173
If heirs die within 30 days of the inheritance, inheritance tax does not apply.
Non-profit and social institutions are exempt from inheritance tax.
Corporate succession
Basically that is the inheritance and gift tax valuation continuing value of a company (ie including goodwill) is decisive, which is liquidation value higher, then this is decisive. However, in the case of company transfers, exemptions are granted if the transferee continues the company for at least five years. In this case, the company value in the amount by which the going concern value exceeds the liquidation value, as well as up to an amount of 1,000,000 euros, is completely exempt from tax, an excess of 83%.
Gift tax
The tax is levied on gifts from persons who either reside in the Netherlands or who have lived there for the ten years prior to the gift, provided they are Dutch nationals; otherwise the period is reduced to one year. The gift tax is generally levied according to the division into tax classes and the tax rates as with inheritance tax, but other tax exemptions apply.
Everyone is entitled to an annual exemption of 2,000 euros. Children have a basic allowance of 5,000 euros for gifts from their parents. Children between the ages of 18 and 35 can also claim a one-time tax exemption of 24,000 euros, which in certain cases (for example for educational purposes or to buy an apartment) increases to 50,000 euros.
Partners are considered one person for gift tax law. This means that gifts made by one partner are always classified as gifts from both partners, just as, conversely, gifts to one partner are always made to both partners for tax purposes.
Gifts that meet a moral obligation, as well as gifts to pay urgent debts such as to avoid foreclosure measures, are exempt from gift tax. There is no gift tax for the recipient even if it has already been paid by the giver.
When donating real estate, the full value - not reduced by an exemption - also incurs 6% real estate transfer tax ( overdrachtsetzting ), which is deducted from the assessment base for the gift tax.
Donations to charitable and social institutions are exempt from the tax.
If the giver dies within 180 days of the gift, the gift is added to the estate and is subject to inheritance tax, against which any gift tax that has already been paid is credited.
Donations must be declared within one month.
Avoidance of double taxation
With the abolition of the transfer of ownership tax , from the Dutch point of view, there can no longer be double taxation with regard to items from foreign testers or donors located there . The situation is different with regard to items from testators who were resident in the Netherlands or donors residing abroad. Here, the Netherlands has concluded agreements to avoid double taxation in the area of inheritance and gift tax with the following countries: Finland , Israel , Austria , Sweden , Switzerland , the USA and the United Kingdom . If, in the absence of such an agreement, there is double taxation of parts of the estate located abroad, the law on the avoidance of double taxation can demand that the tax paid there be offset against the tax due for the inherited or gifted item concerned. There is also a corresponding possibility if double taxation arises solely because of the fact that a Dutch person has remained domiciled in the Netherlands for ten years after the departure.
See also
Individual evidence
- ↑ Stb 1956, No. 362
- ↑ Page of the Dutch Ministry of Finance, loaded on January 7, 2010: Announcement of the new regulation of December 15, 2009 (Dutch)
- ^ Page of the Dutch Ministry of Finance, loaded on January 7, 2010: The new inheritance and gift tax law (Dutch)
- ^ Page of the Dutch Ministry of Finance, loaded on January 7, 2010, announcement of the new regulation of December 15, 2009: Partner Term (Dutch) ; Brochure from the Dutch Ministry of Finance, loaded on January 7, 2010 :castle en erven 2010, page 17f. (Dutch) ( Memento of the original from April 8, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 179 kB)
- ↑ On the basis of the brochure of the Dutch Tax Administration: Schwieringdienst 2010 Nenning en Erven Brochure of the Dutch Ministry of Finance, loaded on January 7, 2010: bitten r nerven 2010, page 21 ( Memento of the original from April 8, 2011 in the Internet Archive ) Info: Der Archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , PDF; 179 kB
- ↑ habendienst.nl/wps/wcm/connect/nl/erfastening/content/vrijstelling-erfladening , website of the tax administration of the tax office of the Netherlands. Retrieved September 20, 2019.
- ↑ Brochure from the Dutch Ministry of Finance, loaded on January 7th, 2010: Erf- en schenkastening en de bedrijfs-opvolgingsregeling 2010 ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Dutch tax administration: Nenning en schenking 2010 (Dutch), PDF ( Memento of the original dated February 2, 2010 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Page of the Dutch Ministry of Finance, loaded January 8, 2010, International aspects of taxation in the Netherlands (English)
- ↑ European Association of Tax Law Professors, uploaded January 9, 2010, J. Zwemmer & F. Sonneveldt, Netherlands, No. 2.1: Unilateral relief (English), under Report Netherlands or as Word document: [1]
literature
- Troll-Gebel-Jülicher: Inheritance Tax and Gift Tax Act , loose-leaf commentary, 37th edition 2009, Vahlen, ISBN 978-3-8006-2402-7 , § 21 ErbStG marginal no. 119 (Netherlands)
