NETHERLANDS Law and Practice Contributed by: Nathalie Idsinga and Mignon de Wilde, Arcagna
scientific organisations are deemed to have a legiti - mate interest, if they are active in the fields of the prevention of money laundering, terrorist financing and related crimes. The Chamber of Commerce has announced that it will gradually expand the access to the UBO Register. In addition to the UBO Register for corporate and other legal entities, the Netherlands has a separate register for trusts and similar legal arrangements (the “Trust Register”). Registration requirements apply to trusts that are established or located in the Nether - lands, as well as to trusts established or located out - side the EU that acquire Dutch real estate or enter into a business relationship in the Netherlands. The UBOs of a trust include the settlor(s), trustee(s), protector(s), beneficiaries or classes of beneficiaries and any other natural person who ultimately exercises control over the trust. Access to the Trust Register, like the UBO Register, is currently restricted as a result of the Euro - pean Court of Justice ruling of 22 November 2022 (see above). Mandatory Disclosure Pursuant to the Mandatory Disclosure Directive, the Netherlands has implemented rules requiring EU- linked intermediaries (such as lawyers, tax advisers and bankers) and, in certain cases (eg, where the intermediary is entitled to legal professional privilege), the taxpayers themselves to report specific arrange - ments to the Dutch tax authorities. These arrange - ments typically involve potentially aggressive tax plan - ning with a cross-border element, or are designed to circumvent reporting obligations such as those under the CRS and UBO regimes. The Dutch tax authorities will automatically exchange the information received within the EU via a centralised database. 2. Succession 2.1 Cultural Considerations in Succession Planning This is not applicable in the Netherlands. 2.2 International Planning As businesses and families become more internation - ally mobile, it is important to pay close attention to
Dutch tax residency rules. Although the Netherlands has an extensive network of tax treaties for income tax purposes, it has concluded only seven inheritance tax treaties, of which only two also cover gift tax. As a result, while tax treaties can generally resolve issues of double tax residency for income tax, double resi - dency – and thus double taxation – may still arise for gift and inheritance tax purposes. 2.3 Forced Heirship Laws Children of the deceased have forced heirship rights (legitieme portie). Although they can be disinherited, they retain the right to make a monetary claim equal to 50% of the value of the share they would have received under intestacy. This claim must be made within five years of the deceased’s death, or earlier if an interested party sets a reasonable deadline. If not claimed in time, the right lapses. These forced heirship rights apply only to the estate of the deceased par - ent. For example, if the deceased was married under a full community of property regime, the children are collectively entitled to a quarter of the total property of the deceased and their spouse, as the deceased par - ent’s estate consists of only half of the total property. A child who asserts their forced heirship rights does not become an heir but acquires a monetary claim against the deceased parent’s estate. This claim can be satisfied from estate assets. If the estate lacks suf - ficient assets, the claim can be recovered from certain gifts made by the deceased including gifts made with - in five years before death, gifts to descendants and gifts intended to infringe upon forced heirship rights. Children may also recover their claim from trust assets if the trust settlement qualifies as a donation by the deceased. Forced heirship claims can generally be collected six months after the parent’s death. How - ever, the will may stipulate that the claim is only pay - able after the death of the deceased parent’s spouse, registered partner, or life partner with whom the parent had a notarial cohabitation agreement. This provision may also apply if the spouse, registered partner or life partner is not the children’s parent. A disinherited spouse or registered partner also has certain statutory rights, including a right of usufruct over the family home and household effects and a right of usufruct over other estate assets if required
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