Gift tax

Gift tax

Gift tax is tax that is levied on donations in the Netherlands. When someone receives a donation, the recipient may have to pay gift tax over the monetary value of the gift.

Frequently asked questions are:

  • What are the rules regarding tax free donating of a privately owned house?
  • Am I allowed to deduct a donation to a good cause?
  • What is a donation on paper?
  • How do I make sure that I do not pay too much gift tax?
  • What are the rates for exemptions?

By taking the right steps, you can save a large amount of gift tax if you want to financially support your (grand)children or others, for instance when buying a house or paying contribution to an expensive education.

The tax advisers from AAme Accountants and Tax Advisers are more than happy to discuss your options and create a donation plan. This ensures that you use the annual and/or one-time exemptions to their full extent. Also, this has the additional benefit that in the event of passing away, the remainder of inheritance tax payable is minimal.

 

Rates (2019)

The amount of gift tax depends on your relationship to the donor. This means that a partner or a child of the donor will pay less tax than a brother, sister or someone who is not related. The figures below clarify this:

Value of the donation: € 0 – € 124,727
Partner and  (foster)children: 10%
Grandchildren and further descendants: 18%
Others: 30%

Value of the donation: € 124.727 and more
Partner and (foster)children: 20%
Grandchildren and further descendants: 36%
Others: 40%

Exemptions (2019)

Depending on the situation, the purpose of the donation and the relationship between de donor and the recipient there are exemptions. Examples of these exemptions are:

  • Annual donations to your children of € 5,428;
  • A one-time donation of € 26,040 (free disposable) to € 54,246 (expensive study or house) to your children between the age of 18 to 40;
  • A one-time donation of € 102,010 to your children between the age of 18 to 40;
  • Annual donations to other recipients of € 2,173;
  • A one-time donation of € 102,010 to other recipients up to the age of 40, to be spent on a their privately owned primary residence.

 

Donate as favorable as possible

Our advisers are more than happy to discuss the options with you, so you can donate or receive as favorable as possible. Feel free to get in touch!

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