Netherlands Inheritance and Gift Tax Guide

Inheritance Tax (Erfbelasting)

• Who pays: The beneficiary pays inheritance tax on the value of what they inherit — not the estate. Each beneficiary files a separate inheritance tax return (aangifte erfbelasting) with the Belastingdienst within 8 months of the death. The return is filed via Mijn Belastingdienst with DigiD.
• Tax-free thresholds (vrijstellingen): Spouses and registered partners: unlimited (€0 tax on any amount inherited from partner). Children and stepchildren: approximately €21,515 (2026). Grandchildren: approximately €2,658. Parents: approximately €53,067. Other heirs (siblings, aunts/uncles, non-relatives): approximately €2,658. Seriously disabled heirs: higher thresholds may apply. The thresholds are indexed annually.
• Progressive rates: For spouses and children — up to €138,641: 10%; above €138,641: 20%. For grandchildren and more distant heirs (siblings, parents, others) — up to €138,641: 18% (siblings/parents) or 30% (more distant); above €138,641: 36% (siblings/parents) or 40% (more distant). The threshold is indexed annually to approximately €138,641 (2026).
• Calculation example: A child inherits €300,000 from a parent. Exemption: €21,515. Taxable: €278,485. First bracket (up to €138,641) at 10%: €13,864. Second bracket (€278,485 − €138,641 = €139,844) at 20%: €27,969. Total inheritance tax: €41,833. Effective rate: 13.9%.

Gift Tax (Schenkbelasting)

• Same rates as inheritance tax: Gift tax rates are identical to inheritance tax rates — 10–20% for children, 18–40% for others. The exemption amounts for gifts are different from inheritance exemptions.
• Annual gift exemption (jaarlijkse schenking): Parents may give up to approximately €2,658 per year to each child tax-free (2026). Grandparents may give up to approximately €2,658 per year to each grandchild. Other donors may give up to approximately €2,658 per year to any donee. These exemptions apply automatically — no gift tax return is required.
• Once-in-a-lifetime increased gift (eenmalig verhoogde schenking): Parents may give a child aged 18–40 a one-time increased gift of approximately €31,388 (2026) for a specific purpose: buying a home (eigen woning), home improvement, home renovation, repaying a mortgage, or study costs. The gift must be used for the designated purpose — supporting documentation is required. If the child uses the exemption for a home purchase, the money must be used within a reasonable timeframe. The one-time gift can also be split into multiple years if the total stays within the exemption.
• Gift to a spouse or partner: Gifts between spouses or registered partners are unlimited and tax-free.
• Gift reporting: Gifts above the annual exemption (€2,658) must be reported to the Belastingdienst via a schenkbelasting return (aangifte schenkbelasting). The donor is primarily liable for the gift tax, but the donee may agree to pay it. In practice, the donee usually pays.

Business Succession (BOR — Bedrijfsopvolgingsregeling)

• Purpose: The BOR provides a substantial exemption from inheritance and gift tax for the transfer of a business (or BV shares) to the next generation. The regime is designed to prevent businesses from being broken up to pay succession taxes.
• Exemption rates: 100% exemption on the first ~€1.3 million of business value (2026). 83% exemption on the excess above ~€1.3 million. This means the effective tax on business succession is very low — on a €5 million business, the taxable amount is (€1.3M × 0%) + ((€5M − €1.3M) × 17%) = €629,000, which is then taxed at the beneficiary's progressive rate (10–20% for children). Total tax: approximately €63,000–€126,000 on a €5 million transfer — an effective rate of 1.3–2.5%.
• Conditions: The business must be an operating company (onderneming) — passive holding companies and investment entities do not qualify. The BV shares must represent an interest of at least 5% in the company's capital. The donee/heir must continue the business for at least 5 years (objectieve voortzettingseis). If the business is sold within 5 years, the exemption is clawed back with interest. The business must have been operating for at least 1 year before the succession (for gifts) or have existed at the date of death (for inheritance).
• Application: The BOR exemption is applied for in the inheritance/gift tax return. The donee/heir must provide supporting financial statements and a business plan demonstrating the continuation commitment. The Belastingdienst conducts random audits of BOR claims during the 5-year continuation period.
• BOR planning: Business owners should start planning 3–5 years before the intended succession. Key steps: (a) ensure the BV qualifies as an operating company (minimum substance, active business), (b) consider gifting shares in tranches to use multiple annual exemptions alongside the BOR, (c) document the donee's role in the business to demonstrate genuine succession, and (d) for company-owned real estate, ensure the property is used for the business (not as a passive investment). See our DGA Guide → for BV structuring.

Estate Planning Considerations

• Dutch will (testament): A Dutch will is essential for estate planning. Without a will, the Dutch intestacy rules apply — the spouse inherits all assets, with the children having a deferred claim. A will can optimise the inheritance tax position through: establishing a making (executor), setting up a fideï-commis (trust-like arrangement), and using the wilsrecht (right of choice) for the surviving spouse. Dutch notaries specialise in estate planning wills.
• Cross-border estates: For expats with assets in multiple countries, inheritance tax planning is complex. The Netherlands taxes worldwide assets for Dutch residents. Other countries may also tax local assets (real estate, shares in local companies). Tax treaties for inheritance tax are limited — the Netherlands has only ~15 inheritance tax treaties. Professional advice is essential for cross-border estates.
• Ownership structures to minimise inheritance tax: (a) BV for investment assets — holding investment property or a share portfolio in a BV converts the assets from box 3 (2.17% annual tax) to corporate assets. Upon the owner's death, the BV shares pass to the heirs. The BV structure may reduce the inheritance tax value (the BV's net equity, not the market value of the underlying assets) when applying the BOR or valuation discounts. (b) Familiestichting (family foundation) — a Stichting can be used for asset protection and succession planning, but Netherlands anti-avoidance rules (afgezonderd particulier vermogen — APV) may attribute the foundation's assets back to the settlor for tax purposes. (c) Living trust (outside the Netherlands) — foreign trusts are not recognised under Dutch law and may be treated as opaque entities with unattractive tax consequences.

For BV structuring for business owners, see our DGA Guide →. For personal tax planning and the three-box system, see our Personal Tax Guide →.