Dutch inheritance tax

When you work and live in the Netherlands as an expat you come across a wide variety rules and regulations within the Dutch tax system. Dutch tax law can be quite complex, especially when it comes to assets or transferring those assets. Should you pass away when living in the Netherlands as an expat those assets are subject to Dutch inheritance tax. Dutch Umbrella Company’s advisors know all about the details on Dutch inheritance tax and will make sure that you will comply with all specifications if needed.

Dutch inheritance tax conditions

Learning about the implications that the transfer of your assets has should you pass away is very important, also if you are planning to stay only for a short period of time as an expat. The most important conditions that apply to Dutch inheritance tax state that:

• The residence of the acquirer doesn’t play a role when levying inheritance tax;
• The location of the assets doesn’t play a role when levying inheritance tax;
• The moment you leave the Netherlands as an expat your assets can’t be subject anymore to Dutch inheritance tax.

When you’re not fully aware of all conditions a major consequence can be that inheritance tax is levied both in the Netherlands and abroad, so called double taxation. That occurs in situations when assets of the deceased are located abroad, the deceased is also residing in a foreign country or the acquirer resides abroad. In some cases double taxation relief is granted, Dutch Umbrella Company can help you sort out all necessary details.  

Dutch inheritance tax rates

Dutch inheritance tax rates vary depending on the nature of the relationship between the deceased and the acquirer of the assets:

• Inheritance tax percentages for partners and children vary from 10% to 20%;
• Inheritance tax percentages for grandchildren and great-grandchildren vary from 18% to 36%;
• Inheritance tax percentages for third party relations vary from 30% to 40%.

As for most regulations under Dutch tax law there are exemptions that also apply for Dutch inheritance tax. For partners of Dutch residents an exemption of 636.180 euro’s is in place, for children there is a tax exemption of 20.148 euro’s.

Dutch Umbrella Company and inheritance tax

Dutch inheritance tax is probably something you will, luckily, not have to deal with during stay in the Netherlands. But if you do, it’s absolutely something that you must have taken care of to prevent it from being a possible costly affair. When you come over to the Netherlands to work as an expat it’s imperative that you have all details around your specific inheritance tax situation sorted out. Dutch Umbrella Company is happy to share all the knowledge and experience we have so you won’t have to worry about anything else but the job at the hand!