In the Netherlands, several rules apply with regard to donations. After a certain treshold, tax has to be paid on a donation. Parents are allowed to donate an amount of money tax-free to each child every year. If you do not exceed this amount, you are not required to report this gift with the tax authorities.

Furthermore, when your child is between 18 and 40 years old, it is possible to donate a higher one-off tax-free amount. If the gift is used for an expensive study or training, the exempted amount is even higher. The exemption has also been increased for the purchase or renovation of an owner-occupied home or the repayment of a mortgage debt. When donating these large amounts, a declaration to invoke this exemption must be made to inform the Tax Authorities.

Do you want to know what the exempt amount is for this year or do you want more information about donating? Please feel free to contact our office to make an appointment.