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Gifting in the Netherlands is tax-free — but subject to gift tax above certain thresholds (5% to 40% depending on the relationship and amount). For children, an annual exemption of €6,633 (2024) applies, in addition to a one-off increased exemption for large income jumps. For business transfers within the family: the Business Succession Scheme (BOR) provides a virtually full exemption up to €1.5 million. Below: rates, exemptions, and how Karim's parents gift €50,000 without it hurting.
The short answer
- Gift tax: paid by the recipient on gifts exceeding exemptions.
- Rates: 10-20% for children/partner, 18-36% for others, 30-40% for distant relatives.
- Annual exemption for children: €6,633 (2024) — without filing.
- One-off increased exemption: €31,813 (children 18-40 years) or €66,268 (owner-occupied home) — once in life.
- Business transfer: Business Succession Relief — up to 100% exempt for enterprises up to €1.5 million.
Who pays gift tax?
The recipient pays gift tax (unlike inheritance tax where it comes from the estate). Filing is mandatory above the exemption amount — within 2 months after the end of the calendar year in which the gift took place. Late filing: penalty + interest.
Rates 2024
The rate depends on the relationship between the donor and the recipient:
Rate Group I (partner, children)
- 0 – € 152.368: 10%.
- Above €152,368: 20%.
Rate group IA (grandchildren)
- 0 – € 152.368: 18%.
- Above €152,368: 36%.
Rate Group II (others — brothers, sisters, friends)
- 0 – € 152.368: 30%.
- Above €152,368: 40%.
Exemptions 2024
Per calendar year:
- Children: €6,633 annual free.
- Other: €2,658 annually exempt.
One-time (per recipient, per life):
- Children 18-40 years (general): € 31.813.
- Children aged 18-40 (own home, study): €66,268 (abolished as of 2024 for own home — last year 2023).
- Study: €66,268 (subject to conditions being met).
Please note: the one-time increase requires a declaration, even when using the exemption.
Business transfer: the BOR
In the event of a gift or inheritance of business assets, the Business Succession Scheme (BOR) can provide up to 100% exemption from gift or inheritance tax:
- Business assets up to €1,500,000: 100% exempt.
- Above that: 83% exemption.
- Requirements: continuation of the business by the recipient for at least 5 years, prior ownership for at least 1 year (gift) or 5 years (inheritance).
Business Succession Relief (BOR) makes the transfer of family businesses affordable. Combine with Box 2 deferral for capital gains on the sale of shares. Separate tax process — have a family business tax specialist guide you.
Smart gifting: planning
Strategies to minimize tax:
- Annual exemption amount: gift €6,633 per child each year — large amounts spread over years.
- One-time increased exemption: use of a child aged 18-40 up to €31,813 exempt on a one-off basis.
- Combine donors: both father and mother can each donate €6,633 tax-free per year (together €13,266).
- Gradual transfer of assets: before death — less inheritance tax later.
- Gift on paper: gift with an immediately callable debt repaid to the donor — for assets that are not yet liquid.
Donation at Karim's
Karim's parents want to gift €50,000 for a house renovation. How smart?
- One-off increased exemption (Karim < 40 yrs): € 31,813 exempt.
- Annual exemption: €6,633 exempt.
- Taxable: € 50,000 – € 31,813 – € 6,633 = € 11,554.
- Gift tax: 10% × € 11,554 = € 1,155.
With planning, it could have been different: spreading the gift over years or having a partner participate, possibly entirely at their discretion.
Honest recommendation
For large gifts (over €30,000), tax planning is worthwhile — a small investment in advice often saves thousands in gift tax. For family business transfers: the Business Succession Relief (BOR) process is specialist work; a good tax advisor and notary are indispensable. For small annual gifts: make smart use of the annual exemption without the obligation to file a tax return.
For other topics: substantial interest and Box 2, transfer tax on business premises and BV taxes.
Frequently Asked Questions
The recipient of the gift pays gift tax — unlike inheritance tax, where it comes from the estate. A return must be filed within 2 months after the end of the calendar year in which the gift took place.
Rate Group I (partner/children): 10% up to €152,368, 20% above that. Grandchildren: 18-36%. Others: 30-40%. The rate depends on the donor-recipient relationship and the amount.
In 2024: €6,633 annually exempt for children, €2,658 for others. One-off (per lifetime, 18-40 years): €31,813 for children (general) or €66,268 for study.
Business succession scheme — for gifting or inheriting business assets up to €1,500,000: 100% exempt, above that 83%. Required: continuation of the business for 5 years by the recipient, prior ownership for 1 year (gift) or 5 years (inheritance).
Yes, a separate exemption applies per recipient. Father and mother can each gift €6,633 tax-free annually per child — a total of €13,266 per child. One-off increased exemptions also apply per recipient.
Gift with an immediately callable debt relationship returned to the donor — for assets that are not yet liquid. The Tax and Customs Administration accepts provided that accrual interest is paid annually. A type of deferral of the actual transfer of assets.
For gifts exceeding €30,000, business transfers (BOR), gifts to grandchildren or others, and international gifts. A few hundred euros in advice often saves thousands in unnecessary gift tax.
