Gift tax

The giftee is the person who has to pay the tax.

Any gifts of immovable property must be done by notarial deed and therefore also be registered. Registration is not mandatory for gifts of movable property.

The tax is calculated on the sales value of the property on the date of the gift. If the deed underestimates the sales value (shortfall estimate), a tax increase is due.

There are different rates depending on the property that is gifted or on the capacity or kinship of the giver or giftee. The rate for gifts of movable property is 3% or 7%. The rate for gifts of immovable property varies from 3% to 40%.

More information can be found on the page ‘gift tax rates’ (in Dutch).

• if, at the time of receiving a gift, you have at least 3 children aged under 21 (in Dutch), you can benefit from a gift tax reduction
• reduced rate for gifts to NPOs, private foundations and public benefit foundations (in Dutch)
• reduced rate for gifts of immovable property undergoing major energy renovation (in Dutch)
• reduced rate for gifts of quality dwellings that are subsequently let with a contract of at least nine years (in Dutch)
• reduced rate for gifts of a protected monument (in Dutch) in which you invest for purposes of renovation within five years.

Some reductions are only granted after a certain period during which you must meet the conditions.

• Movable property can be gifted by notarial deed, by manual gift (e.g. handing over a sum of money) or by bank gift (a transfer of money). If you do not register the proof of gift (of movable property), you don’t have to pay gift tax.
• If a person with a disability receives a gift, a reduction can be applied.
• If a person has inherited property and passes on all or part of this to their descendants within the year, the giftees may claim a (partial) exemption from gift tax.
• To encourage business managers to think about their succession after their death, a gift tax exemption applies to gifting these family enterprises and companies. Should a business manager die before making such a gift, a reduced inheritance tax rate (in Dutch) will apply.
• An exemption from gift tax applies to the value of undeveloped immovable property, the ‘natural goods’, for which a nature management plan has been approved (in Dutch).
• In certain situations you must, if you acquire the bare ownership of a property, pay registration tax or inheritance tax on the value of the full ownership of the property you acquired. If you later also acquire the usufruct, this transfer will be exempt from registration tax. Such cases are described ont he page ‘peculiar transfers of property’ (in Dutch).
• Gifts made within the framework of the realisation of a brownfield project (in Dutch) may be exempted from gift tax, sales duty and division duty.