The full text of this fact sheet is available in pdf-format.
Those who receive a donation or gift from someone who is resident in the Netherlands at the time of the donation must pay gift tax. Optimal use of the statutory exemptions limits the gift tax. In this note, we briefly describe the exemptions most commonly used in practice.
All gift tax exemptions are so-called foot exemptions. This means that if a higher amount than the exemption is donated, gift tax is only due on the amount by which the exemption is exceeded[1].
Other acquirers
The general gift tax exemption is per annum € 2.690 (2024: € 2.658). This exemption applies, for example, to an acquisition by grandchildren.
Children
If children obtain from their parent(s), the aforementioned general exemption is replaced by an exemption from € 6.713 (2024: € 6.633) per year.
Single raised (children)
Children are allowed for gifts from their parent(s) during the period between their 18e and their 40e birthday once choose to replace the €6,713 exemption with € 32.195 (the one-time increased exemption; 2024: €31,813). This exemption must be claimed in the gift tax return.
Donation for study: extra increased
If the donation is used for a study whose annual costs exceed €20,000 and the donation is notarised, this one-off increased exemption can be increased to €67,064 (the one-off increased exemption; 2024: €66,268).
Donation for own home (“jubilee bonus”)
This exemption was abolished with effect from 1 January 2024. Gift recipients who received an amount applying this exemption in 2022 (possibly supplemented in 2023 to € 106,671) must have spent the amount received on their own home by 31 December 2024. To the extent that this has not been done, it must be reported to the Tax Administration by 31 May 2025. If the donation was made under the resolutive condition of spending, the unspent amount must be repaid to the donor. To the extent that the unspent amount is not repaid, gift tax is still due on it.
Full exemption
Acquisitions up to the full amount received are exempt from gift tax (among other things):
- by an ANBI, an SBBI and a support foundation-SBBI, as well as[2];
- from an ANBI.
BOF
One of the biggest exemptions in gift tax is the business succession facility (BOF). This exemption applies when company assets (or substantial interest shares of a BV in which a material company is run) are acquired by gift.
The BOF is a conditional exemption: the acquired business must be continued for at least 5 years (for gifts after 31 December 2024, this period may be reduced to 3 years). If this is not met, the gift tax is still due.
For the going concern value up to € 1.500.000 (2024: € 1.325.253) to acquired business assets is subject to a 100% conditional exemption; above that, 75% (2024: 83%) of acquired business assets is conditionally exempt from gift tax.
It is not within the scope of this short note to elaborate on the conditions attached to the application of the BOF.
From 2024, property leased to third parties is excluded from the BOF by operation of law.
With effect from 2025, the efficiency margin of 5% will be abolished and the part of property used for non-business purposes will not belong to business assets if the non-business use is 10% or more and the fair value of the property exceeds €100,000.
Rates
To the extent that the amount received by virtue of gift exceeds the exemption, the following rates apply.
Up to an amount (after deducting the exemption) of € 154.197 (2024: € 152.368) pay:
- the partner and children: 10%
- (great) grandchildren: 18%
- other acquirers: 30%
On the amount of the acquisition above € 154,197 (2024: € 152.368) pay:
- the partner and children: 20%
- (great) grandchildren: 36%
- other acquirers: 40%
Declaration
When gift tax is due and/or one of the increased exemptions is applied, Tax Authorities should be requested to issue a tax return form in due time
However, it is also allowed to file a gift tax return directly. This can be done online (which requires a DigiD) or with a form on the Tax Administration's website.
The gift tax return must be filed within 2 months of the year in which the gift was received. Therefore, for gifts received in 2024, the Inland Revenue must file the gift tax return no later than 28 February 2025 have received.
Opinion
In this note, gift tax exemptions and rates have been broadly discussed. Of course, taxation is an important element in considering whether or not to donate. But more (financial and emotional) concerns come into play in general. And when executing donations, care must be taken to ensure that all conditions and formalities are met in time. It is often wise to put the terms of the gift in writing.
The purpose of this note is to outline a scheme. For the sake of readability, matters have therefore been simplified. VWG is not liable for the consequences of actions taken or not taken as a result of this memorandum.
[1] If €5,000 is gifted in 2024 using the general exemption, gift tax is due on €5,000 -/- €2,690 = €2,310.
[2] ANBI is a Public Benefit Organisation. SBBI is a Social Advocacy Institution.