NETHERLANDS Trends and Developments Contributed by: Frans Sonneveldt, Mike Vrijmoed and Bianca de Kroon, Forvis Mazars NV
Forvis Mazars NV Lange Voorhout 78 2514 EH The Hague The Netherlands Tel: +31 088 277 10 01 +31 088 277 10 50 Email: secretariaatdenhaag.nl@forvismazars.com Web: www.forvismazars.com
The Dutch private wealth market is entering a peri - od of increasing complexity. Over the past decade, wealthy families and entrepreneurs have seen a steady stream of legislative changes, court decisions and policy proposals. At the same time, many families are facing challenges that extend well beyond taxation. Generational transitions, international mobility, fam- ily governance and the growing professionalisation of family offices are becoming equally important factors in wealth planning. Families are looking for structures that can withstand change, rather than those merely optimised for today’s rules. Trends As we survey the Dutch tax landscape, it is clear that we are in a period of significant change, with sub - stantial implications for high-net-worth individuals, family businesses and their advisors. The key trends we observe are: • there is a growing social and political debate about wealth inequality; • ongoing uncertainty surrounding the taxation of private wealth, in the Netherlands particularly in Box 2 and Box 3; • a great focus on business succession (adjustments to business succession facilities are being made to better align with practical realities) and intergenera - tional wealth transfer; • growing international mobility among entrepre - neurial families and a decrease in the support of favourable regulations for expatriates; • increasing transparency and impact on privacy- driven structures;
• continued professionalisation of family offices; and • growing interest in philanthropy and impact invest - ing. Many of these trends are interconnected. Legislative developments often drive behavioural changes, while international families increasingly require integrated advice that extends well beyond tax considerations. The sections below discuss some of these develop - ments in greater detail, beginning with the continuing evolution of the Dutch personal income tax system. The Great Wealth Transfer and The Inequality Debate The coming decades will see the largest transfer of wealth between generations in history. The post-war generation of entrepreneurs and investors is passing on businesses, investment portfolios and real estate to the next generation and the Netherlands is no exception. For many family businesses, the coming decade will be decisive for succession, which explains why the business succession rules discussed below attract so much political and practical attention. This transfer coincides with an intensifying social and political debate about wealth inequality. At the interna - tional level, proposals for coordinated taxation of the wealthiest individuals have reached the G20 agenda. In the Dutch political debate, the taxation of wealth has moved to centre stage, with proposals ranging from heavier taxation of capital income to variants of a net wealth tax aimed at the largest fortunes.
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