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Gift tax return
Get a grip on your gift tax return by seeking tax advice on time
What is gift tax?
Gift tax is the tax imposed on the value of what a person has received by gift. Examples include donating money, selling a home too cheaply to another person, or providing an interest-free loan.
If you are considering making a gift or receiving a gift, in many cases the recipient must pay gift tax. Gift tax rates and exemptions are set annually. In 2023, €2418 per year may be donated tax-free to all individuals. The amount that may be donated from parent(s) to child is €6,035. The amount of gift tax payable depends on:
- The relationship to the donor
- The age of the recipient
- The purpose of the donation
Know how to save on your gift tax return
If you receive a gift, then you want to avoid paying a lot of gift tax. Therefore, you should carefully research the exemptions. Do this before accepting or receiving a donation. Our tax specialists will be happy to assist you and prepare your gift tax return.
This we promise
- You discover what the possibilities and associated conditions are
- Your regular advisor will let you know if the gift has consequences for your income tax
- Up-to-date fiscal knowledge through permanent education. Also notarial knowledge in-house.
Contact with a tax expert within 1 working day
Does the donor live abroad?
If you live in the Netherlands and receive a gift from another resident of the Netherlands you must always file a gift tax return.
Do you receive a donation from abroad and is the donor Dutch? Then you only have to file a gift tax return if the donor moved abroad less than 10 years ago. If the donor has lived abroad for more than 10 years you do not have to pay gift tax.
Do you receive a donation from abroad and does the donor not have the Dutch nationality? Then you only have to file a gift tax return if you receive the gift within a year after the donor left the Netherlands.
Do you have questions about a donation from abroad? We know the ins and outs and will give you international tax advice.
When should you file gift tax returns?
If you receive more than the general exemption, you must file a gift tax return. Note: sometimes, the tax authorities add up donations from several people. This happens, for example, if in one year you receive a gift from your (step) father and your (step) mother. Or from your grandfather and your grandmother.
What is the deadline for the return
If you receive a donation this year, the tax authorities want you to file a tax return before 1 March next year. Even if you do not receive a tax return form. By the way, the giver can also handle the gift tax. This happens rather rarely because the giver pays more tax than the receiver.
May the donor pay the gift tax?
Are you the recipient of a gift or donation? If so, you are required to file a gift tax return and you usually pay the gift tax yourself. This is not the case if the donor chooses to pay the gift tax. The amount of gift tax is seen by the tax authorities as an increase in the gift. It's called "net" gifting or gifting "free of duty.
How much tax do I have to pay on the donation?
The amount of gift tax you pay varies from 10 to almost 40%. The rate depends on the value of the gift and your relationship to the giver. In addition, it is also good to pay attention to whether:
- your partner receives a gift in the same year
- the gift(s) will make you pay wealth tax on your income tax return
- You have already received a donation whereby an exemption has been claimed. It is possible that, in the case of a subsequent donation, you will no longer be able to use the exemption, even though you did not use the full amount before.
What are the exemptions?
Exemptions are donated amounts on which you do not pay gift tax. There are exemptions for partners and children. They pay a lower tax rate than grandchildren who receive a gift. In turn, grandchildren pay less than other acquirers. The further removed the (blood) relationship is, the higher the tax to be paid.
Gift tax exemptions:
- The general exemption
- Release for exemption to children
- Single increased exemption for children 18 to 40 years old
- Exemption for expensive study or housing
- Business succession scheme
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Exceptional situations for the gift tax
In exceptional situations, you may not have to pay any tax at all on a donation. Here are 4 examples:
- someone helps you to pay off urgent debts
- you receive a donation from a family member or acquaintance who lives abroad
- a person gives you a gift because they want to correct a big financial mistake
- Your ex-partner is contributing to your expenses while you are not entitled to alimony
Take a good look at the conditions and make sure you don't overestimate your assets.
Seek tax advice and benefit from our knowledge
We have years of tax experience and up-to-date (international) tax knowledge. With Habermehl you can not only file your gift tax return, but also get tax advice. Benefit from our knowledge on, among other things:
Take advantage of one-time higher gift tax exemption
Your (step) parents can give you 1 tax-free gift more than the general exemption. This can be for a general purpose or for an expensive study. Your parents or others may also give you a gift for your own home. Important information:
- Conditions vary by situation
- The tax benefit varies by purpose
- Know what you're choosing: you can take advantage of the increased exemption once in a lifetime
Good tax advice pays for itself
Nobody wants to pay too much tax. And certainly not for a donation. Will you be receiving a gift or a paper donation soon? Please contact us. It would be a shame to miss out on an exemption because you don't know the rules or misinterpret them.
Are you striving to transfer your assets to the next generation as favorably as possible? Then it is advisable to seek tax advice on gifts. We know everything there is to know about gift tax returns, the right time to make gifts and about the level of rates and exemptions.
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You can reach us at (035) 628 5753 or info@habermehl.tax. Do you prefer us to contact you? Fill in your details and we will contact you as soon as possible.
