The Dutch inheritance and gift tax rates in 2021 are as follows: limited exemptions apply to spouses and (grand)children. The exemption from the spouse`s inheritance tax is €671,910 (2021) and €3,244 (2021) for gift tax. For children (grandchildren), the exemption from inheritance tax is €21,282 (2021). Gifts to children are exempt from €6,604 (2021), while grandchildren benefit from an exemption of €3,244 (2021). Exemptions from donation tax are annual. In 2021, tax exemptions on donations were increased by €1,000 due to the coronavirus pandemic. In 2022, the exemptions will be reduced again. Transfers to recognized charities are fully exempt from inheritance and gift tax. Article 7:178 Donation to a confidential consultant or service provider – 1.
A contract of donation is cancellable if it is entered into during an illness of the donor and the donation is made either to a person who practises his profession in the field of individual health services and provides him, or to a person who provides mental assistance and supports him during his illness. – 2. A donation contract is also voidable if it is entered into during the period during which the donor has remained in a retirement home for the elderly or for patients with mental disorders and the donation is made to the person who owns or manages that institution or to someone who works there. – 3. Article 4:62(2) and (3) of the Civil Code shall apply mutatis mutandis. – 4. The right to cancel a compensatory donation contract in accordance with paragraphs 1 or 2 shall be prescribed three years after the end of the illness referred to in paragraph 1 or, in the case of the situation referred to in paragraph 2, three years after the donor`s exit from the retirement home. – 5. After the death of the donor, any person who has been disadvantaged by the donation may cancel the countervailable donation contract on the basis of paragraph 1 or paragraph 2. In that case, the countervailable gift shall be cancelled only to the extent necessary to reverse the disadvantage of the person who cancelled it. A right of action (legal right) to contest a countervailable gift on the basis of the first sentence of this paragraph shall be exercised on a date to be determined in accordance with Article 4:54 of the Civil Code, but in any event three years after the end of the disease referred to in paragraph 1 or, in the case of the situation referred to in paragraph 2, three years after the release of the donor from the retirement home.
The Netherlands has concluded bilateral agreements with Belgium and Germany on the taxation of frontier workers. These agreements stipulate that the tax rights on the wages of cross-border workers in the context of working from home must not change due to the coronavirus pandemic. In addition, the Dutch Finance Minister indicated that he supported the OECD`s analysis of the coronavirus pandemic. This suggests that the actual location of running the business and the tax residency of natural persons should not change due to travel restrictions related to the coronavirus pandemic. Article 7:184 Contestability of the donation contract – 1. Whether the donation has already been made or not, the donation contract is voidable: a. if the recipient is in default of fulfilling an obligation imposed on him at the time of the donation, for which neither the donor nor a third party can claim the service [if the donor or a third party can claim the service, it may terminate the contract of gift for breach of contract within the meaning of Article 6:265]; b. if the recipient intentionally commits an offence against the donor or his closest relatives; c.
if the owner is legally or contractually obliged to contribute to the donor`s living expenses and is in default of complying with this maintenance obligation. – 2. A `criminal offence` in point (b) of paragraph 1 also means the attempt or preparation of a criminal offence or participation in a criminal offence. Article 7:177 Donation after the death of the donor – 1. To the extent that a donation contract necessarily implies that it must be performed only after the death of the donor and that it has not yet been effectively fulfilled during his lifetime, it expires with the death of the donor, unless the donation contract was personally concluded by the donor and written in a notarial deed. Insofar as the donation concerns clothing, personal accessories or pre-displayed jewellery, furniture or personal books, a private certificate is also sufficient, provided that it is entirely handwritten, dated and signed personally by the donor. – 2. If the donor has reserved the right to revoke a donation contract within the meaning of paragraph 1, such revocation may be effected by means of a donor declaration addressed to the recipient or a corresponding statement in the donor`s will, without informing the recipient separately of the revocation. == References ===== External links ===References ===== External links ===* Official website The residence determines income tax as well as inheritance and gift tax in the Netherlands. As a general rule, inheritance and gift tax agreements do not follow the OECD model. Note that trust is generally considered transparent.
Therefore, a gift or inheritance to a trust is considered a gift or inheritance from the donor or deceased to the beneficiary of the trust. As a general rule, a limited community of ownership applies from 1 January 2018. Under this regime, all property (and related debts) acquired during the marriage is part of a community of property. Property acquired jointly before marriage is also part of the community of property. Property acquired under inheritance law or as gift and pension rights does not belong to the community of property, even if it is acquired during the marriage. The assets and income of an irrevocable discretionary trust are allocated to the trustee of Dutch income tax and inheritance and gift tax. After the death of the trustee, the assets and income of the trust are allocated to his heirs. If the trustee is a (fictitious) Dutch tax resident, it is assumed that the heirs inherit the assets of the trust and, as such, are subject to Dutch inheritance tax.
For such allocation rules, it is generally irrelevant who the beneficiaries of the trust are. Apply as residency rules may apply; see question 1.5. In addition, any person who has already lived in the Netherlands, regardless of nationality, is considered resident for the purposes of Dutch gift tax for a period of one year after emigration. Special exceptions may apply to gifts or estates to qualified not-for-profit organizations or to the performance of a moral obligation. Article 7:185 Cancellation of a questionable donation agreement – 1. The right of action (legal request) to cancel a countervailable gift contract under Article 7.184 is time-barred after one year from the date on which the donor became aware that there is a ground for such cancellation. – 2. After the death of the donor, a countervailable donation contract may be annulled by judicial decision on the basis of the preceding subparagraph and, in the cases referred to in Article 7:184(1)(b) and (c), only if the fact giving rise to the ground for the annulment caused the death of the donor. .