What is a gift on paper?
A gift on paper is a promised gift you never actually hand over. A parent signs a notarial deed acknowledging a debt to their child, instead of transferring cash. The child now owns a real claim on that money. They also receive interest on it, every year. The cash itself stays exactly where it is.
Take Anna. She lives in the Netherlands. Her son Tim has since moved abroad. She wants Tim to owe less erfbelasting (Dutch inheritance tax) when she dies. She also still needs her own savings today. A gift on paper lets her do both. The deed creates a debt to Tim that her estate can later deduct. The money itself stays in her account.
Three things decide whether that promise actually holds up.
In short
A debt, not cash: Anna keeps her savings. Only the claim moves to Tim, plus yearly interest.
6% every year: the interest must actually reach Tim's account, not just be written down.
Study exemption excluded: the €69,009 study exemption cannot run through a gift on paper. The €33,129 free-purpose exemption can, under conditions.
Counts as wealth: the claim sits in Tim's Box 3, the Dutch wealth tax. It can affect his toeslagen (means-tested benefits).
How the deed and the interest work
A notary has to record the gift in a deed before the giver dies.¹ A private agreement only counts if a notary ratifies it in time. Most families arrange the deed straight away, rather than risk that deadline.
Every year, the giver pays the receiver at least 6% actual interest on the outstanding debt. The Belastingdienst (the Dutch tax authority) checks that the interest really moves, not just that it is written down.¹
Both sides declare the gift on their own tax return. The giver declares it as a debt, the receiver as a claim.¹ The deed stays required for every gift on paper. Some givers later pay out the debt in cash, often after selling their house. That payout settles the existing debt, it does not skip the deed.
One rule catches families that also want the one-off study exemption.
Why families use it and what it actually saves
Anna could simply keep giving Tim the annual tax-free amount every year: €6,908 in 2026.² She never has to write a cheque to do it. The notary records it as a debt. Anna then pays Tim 6% interest on the growing balance, about €414 in year one. Ten yearly gifts of €6,908 add up to €69,080 in debt.
After ten years of doing this, the debt has grown to roughly €69,000. The cash is still hers. The debt is what her estate can deduct later.
When Anna dies, the Belastingdienst deducts that debt from her estate before calculating erfbelasting.¹ Tim inherits a smaller taxable estate than he would if Anna had simply kept that money in a savings account. That smaller estate still has to clear Tim's own inheritance-tax exemption: €26,230 in 2026.³ The saving is largest for estates already above that line. This page cannot give your saving. It depends on the estate size and the rate that applies.
| Exemption or interest | 2026 amount |
|---|---|
| Annual tax-free gift, parent to child | €6,908 |
| Annual tax-free gift, from anyone else | €2,769 |
| One-off exemption, free purpose (age 18-40) | €33,129 |
| One-off exemption, costly study (age 18-40), not usable with a gift on paper | €69,009 |
| Minimum interest on the debt, paid every year | 6% |
| Child or grandchild inheritance-tax exemption | €26,230 |
“Families ask what a gift on paper saves in inheritance tax. I always start with the receiver. Can they carry the extra wealth on their own return? Can it affect their toeslag without a surprise? That conversation matters more than the euro amount.”
What it costs the receiver
The outstanding claim counts as Tim's own Box 3 wealth.¹ If he ever applies for huurtoeslag or zorgtoeslag (rent or healthcare benefit), that wealth is part of the test. Go over the capital limit and the benefit stops for that whole year.
The 6% obligation runs for as long as the debt exists. Anna cannot skip a year of interest without risking the tax benefit. That makes it a lifelong commitment, not a one-off signature.
Each deed costs a modest notary fee. Give again in a later year and a new deed follows, with a new fee. It is a small cost next to what the structure can save. It is still a real cost, not a free formality.
This risk applies only while the receiver lives in the Netherlands. Ask us first if they already moved abroad, like Tim.
Is a gift on paper right for your family?
A gift on paper is a good fit for some families and a poor one for others.
A gift on paper suits a family that wants to reduce tomorrow's erfbelasting without touching today's savings. It suits them best when the receiver can comfortably carry the extra Box 3 wealth. It suits a family less well when the receiver's own benefits or tax position make that wealth unwelcome.
We weigh both sides before anyone signs at the notary. We prepare the calculation and the interest schedule with you, and the notary draws up the deed. A gift within the €6,908 annual exemption usually needs no gift tax return. Where one is due, our gift tax return service files it for you. A gift on paper only helps when Dutch inheritance tax applies to the giver. Ask us first when the giver lives abroad.
¹ belastingdienst.nl, Wat is schenken op papier? · Accessed
² belastingdienst.nl, Tot welk bedrag is een schenking belastingvrij in 2026? · Accessed
³ belastingdienst.nl, Ik krijg een erfenis in 2026, hoeveel vrijstelling heb ik? · Accessed
Common questions about a gift on paper
Can I combine a gift on paper with the one-off exemption?
Sometimes. For the €69,009 study exemption you must show the money was really spent. A debt on paper cannot show that. The €33,129 free-purpose exemption carries no such condition, so that combination can work.
Do I need a notary for a gift on paper?
Yes, in almost every case. A notary has to record the gift in a deed before the giver dies for it to reduce the estate later.
What if the giver pays out the debt while they are still alive?
The deed stays required for the gift on paper. Paying out the debt later needs no extra notary step. This is common after the giver sells their house.
Does a gift on paper affect the receiver's benefits?
It can. The outstanding claim counts as the receiver's own wealth, part of the test for benefits like huurtoeslag or zorgtoeslag.
Ready to arrange this gift properly?
We work out the gift and the interest schedule with you. The notary records the deed. If a gift tax return is due, we file it for you. Both of you also declare the gift on your own tax return.
