Inheritance and gift tax
Inheritance tax especially, but also gift tax, can be a very complicated matter, depending on many variables. Dutch inheritance and gift tax percentages are pretty high, but there are also tax exemptions. The sooner you seek advice, the better our specialized tax advisors can work out a way for you to be able to keep as much money from the inheritance or gift as possible. We can also check if there are possibilities to avoid double taxation.
Inheritance tax return
Do you live abroad and are the testator in the Netherlands? In that case, Dutch inheritance tax must be paid. Did the testator live abroad and you in the Netherlands? Then no inheritance tax has to be paid in the Netherlands. You do have to file a declaration of the acquired assets at a later stage, box 3 tax. We are happy to be of service with advice, the declaration of inheritance tax, and/or declaration of box-3 assets.
The rate that must be paid in the inheritance tax return depends on the relationship with the deceased and the amount inherited and varies between 10 and 40%. In the case of inheritance tax, an exempt amount applies on which you do not have to file an inheritance tax return. In addition to the inheritance tax an adjusted income tax return must be submitted for the deceased in the year of death with an F-form. These are often difficult matters for the heirs, especially since they do not often occur. We can also file this F-form for you in the most tax saving manner.
Gift tax return
A gift from abroad may not fall under the Dutch tax regime. If the gift is from a non-resident or a resident (but not a Dutch citizen) that has emigrated from the Netherlands more than a year ago, no gift tax is due. But you may become liable for “Box 3” tax as soon as the money arrives in the Netherlands. Donations are often made to contribute to the purchase of a home for the children. Now, a resident of the Netherlands (who is not a Dutch citizen) continues to be a resident, liable only for gift tax (not inheritance tax), up to 1 year after emigrating from the Netherlands.
In case gift tax is due, the person who receives the donation must together with the donor file a gift tax return, but the gift tax itself can also be taken on by the donor and be included in the donation, which then leads to a higher gift tax. With a view to the gift tax return, it is advisable to obtain tax advice on donations. We are happy to advise you on the right time to make donations and on the level of rates and exemptions. We also specialize in estate planning, where we strive to transfer your assets to the next generation in the best possible way for tax purposes.
The gift tax rates are the same as the inheritance tax, but the gift tax exemption amounts are different.
Example situations inheritance and gift tax
You want to transfer your American inheritance & social security benefits to the Netherlands. You are wondering what tax consequences there will be and how to structure things tax-wise.
Since how long have you been living in NL? Could you enlarge a bit as to the assets within the inheritance, and when you received these? As for social security, is it possible for the US to move this as a lump sum? It would also be useful if you could provide your last NL tax return so we have a complete picture of your situation.
You are living in the NL for over 10 years and are originally from the UK. Your father plans to leave you his apartment in London. You are looking for some advice regarding this and how to limit the tax exposure. You think you are not liable for tax here in the Netherlands, only in the UK as your father lives there. Another option is that he already puts it on your name. You are wondering if in that case, you would be tax liable here in NL or if you should just add the value to your box 3.
It is correct that there is no gift or inheritance tax in this case. When you become the owner of the property you will need to declare this in box 3. Based on the treaty double taxation deduction should limit box 3 taxation. We would be happy to advise you on this matter.
You are planning to buy a house in Amsterdam and your mother is willing to gift me 100k for that purpose. She is living in France. You would like to seek your advice on how to keep tax to a minimum.
If your mother does not have Dutch nationality and she has not lived in NL in the past year, there is no Dutch gift tax due. You will need to document the gift as the bank may ask questions upon receipt of the money. Also, the notary may request information regarding the source of the money.
