NETHERLANDS Law and Practice Contributed by: Nathalie Idsinga and Mignon de Wilde, Arcagna
resident (holding) companies if these interests, directly or indirectly, derive their value from real estate located in the Netherlands. For primary residences, the RETT rate is 2% and a one-time RETT exemption is available to individuals aged 18 to 35, provided the property’s value does not exceed EUR555,000. If gift tax is due in connection with the acquisition of real property, the RETT may be (partially) offset against the gift tax. Real estate acquired via inherit - ance is exempt from RETT. Capital Gains Tax The Netherlands does not levy a separate capital gains tax. Dutch VAT Dutch VAT is charged on supplies of goods and ser - vices in the Netherlands. The basic rate is 21% (2026). A reduced rate of 9% (in 2026) applies to other goods and services (eg, food, arts and books) and services (eg, passenger transport, theatre performances). In addition, certain goods and services are subject to 0% VAT or are VAT exempt. 1.2 Exemptions The amount of the applicable exemption depends on the relationship between the deceased or donor and the beneficiary. For inheritance tax purposes, the exemptions for 2026 are: • partners – EUR828,035 (from which half the cash value of pension rights derived by the partner upon the deceased’s death is deducted; the minimum exemption is EUR213,915); • children whose living expenses were mainly paid by the deceased and who are not expected to earn at least half the income of a healthy person within three years – EUR78,671; • other children and grandchildren – EUR26,230; • parents – EUR62,110; and • other beneficiaries – EUR2,769. For gift tax, the annual exemptions for 2026 are:
• children – EUR6,908; and • other beneficiaries – EUR2,769.
For gifts to children aged 18 to 40, the annual exemption can be increased once to EUR33,129 or EUR69,009 if the gift is used for education and certain conditions are met. The Inheritance Tax Act 1956 also provides a separate tax facility for business assets and substantial share - holdings that qualify as business assets: the business succession facility ( bedrijfsopvolgingsfaciliteit or BOR – see 4.2 Succession Planning ). 1.3 Income Tax Planning Upon immigration, a taxpayer holding a substantial interest may, under certain conditions, be eligible for a step-up in the tax basis of their shares to the fair market value at the time of immigration. However, a step-up may be denied or granted only in part if the taxpayer: • has previously resided in the Netherlands; or • has previously been classified as a non-resident taxpayer with respect to the substantial interest. Other (pre-immigration) tax planning includes allocat - ing investment assets between Box 2 and Box 3 and estate planning by making gifts before becoming a Dutch tax resident or, while being a Dutch tax resident, by making annual gifts to children. 1.4 Pre-Immigration and Exit Planning In the year prior to moving to the Netherlands, it is rec - ommended that a taxpayer carefully considers their “Box 3” tax position. The reason is that, for Box 3 pur - poses, the situation on 1 January of the relevant tax year is taken into account, even if the taxpayer was not yet a resident of the Netherlands on 1 January. Because the current (and proposed) Box 3 regimes may tax unrealised income, a taxpayer must consid - er their cash flow position. Another pre-immigration planning opportunity is to consider whether it is tax- advantageous to make any large gifts before becom - ing a Dutch tax resident.
468 CHAMBERS.COM
Powered by FlippingBook