Dutch Gift and Inheritance Tax: Exemptions, Rates and Planning Tips

Dutch Gift Tax: How Much Can You Give Tax-Free?

In the Netherlands recipients pay gift tax (schenkbelasting) on gifts exceeding the annual exemption. The Belastingdienst sets exemptions based on the relationship between donor and recipient.

Annual Exemptions 2025

• Parent to child: €6,633 per year tax-free.
• All other relationships (grandchildren, friends, etc.): €2,658 per year.

If a gift exceeds the exemption, the recipient must file a gift tax return by 1 March of the following year.

One-Time Enhanced Exemption

Parents may make a one-time larger tax-free gift to children aged 18-40:

• €31,813 – unrestricted (no conditions on use).
• €66,268 – if used for an expensive course of study.

The one-time enhanced exemption for purchasing a home (the “jubelton”) was fully abolished from 2024.

Inheritance Tax: What Do Heirs Pay?

Upon death, heirs pay inheritance tax (erfbelasting) on amounts exceeding their exemption. The 2025 exemptions are:

• Partner: €795,156.
• Child: €25,187.
• Grandchild: €25,187.
• Parent: €59,643.
• Other beneficiaries: €2,658.

Inheritance Tax Rates 2025

Rates are progressive and depend on the relationship:

• Partner and children: 10% on the first €152,368; 20% above.
• Grandchildren: 18% on the first €152,368; 36% above.
• Other beneficiaries: 30% on the first €152,368; 40% above.

Smart Gifting to Reduce Inheritance Tax

By gifting regularly during your lifetime you reduce the size of your estate and therefore the inheritance tax due. Example:

Suppose you have two children and gift €6,633 per child each year. Over 10 years you transfer €132,660 tax-free. At death this amount falls outside the estate, saving your heirs up to €26,532 in inheritance tax (at the 20% rate).

Paper Gifts

If you lack liquid assets you can make a “paper gift” (schenking op papier). You acknowledge a debt to your child and pay at least 6% annual interest on the outstanding amount. The gift counts towards the exemption but the money remains available for your own living expenses. Always formalise this with a notarial deed.

Common Mistakes

The most frequent errors include forgetting to file a gift tax return after a large gift, incorrectly applying the one-time enhanced exemption (you may use it only once), and failing to make full use of annual exemptions in the years before death.

Professional Advice

Gift and inheritance tax is complex and personal. At MOJKA Finance in Rotterdam we help individuals create a tailored gifting plan to transfer wealth in the most tax-efficient way. Get in touch for a no-obligation consultation. As your expat accountant in Rotterdam, MOJKA Finance is here to help – contact us for a free consultation.