Jubelton significantly reduced by 2023
The jubelton is a tax-free amount with which your parents, grandparents, uncle/aunt can help you buy a house. However, you will probably have noticed the fuss about the jubelton. Currently, people between 18 and 40 years can get a tax-free gift of €106,671 for their own house. The cabinet has been talking about abolishing this tax-free gift for an owner-occupied home for some time now. They’ve decided: the jubelton will be abolished very soon. As of January 1, 2023, the exemption will only amount to €27,231. As of January 1, 2024, the jubelton will be completely abolished.
Buying a house in the Netherlands: last year of the jubelton
The tax-free gift for an owner-occupied home was intended to get the housing market moving. With this tax exemption, parents could help their children buy a house in the Netherlands. But, as you probably know, this is no longer needed. Currently, house prices are increasing even more due to the tax-free gift. In addition, it is causing inequality among starters (first-time buyers). That is why the cabinet wants to get rid of it, which is now really happening. The gift tax exemption is phased out in two years.
From 2023: gift exemption owner-occupied home €27,231
Next to the exemption for the owner-occupied home, parents are allowed to make a one-off donation of €27,231 to their child. Good to know is that they have to choose between the two exemptions.
As of 2023, the jubelton will be equated to the amount of this one-off donation. But what will actually be the difference between the two gifts in 2023? You can get a tax-free gift for an owner-occupied house from everybody: even from a vague acquaintance. Of course, that rarely happens, but it is allowed. The one-off free donation may only be made from parent to child.
From 2024: jubelton completely abolished
From 2024, the gift for an owner-occupied home will be completely abolished. From this year on, only parents can still use the tax-free one-off donation of €27,231.
What’s the alternative?
In 2022, the tax-free donation for an owner-occupied home is still €106,671. It will be nihil from 2024, with the hope of making the housing market a bit fairer. But what are the alternatives? Of course, you can still gift your child the money. However, you have to pay gift tax on the amount above €27,231 (check out the gift tax tariffs).
A family loan (familiebank) is also an option to help your children finance a house. With rising house prices, it can be complicated to finance a home through a mortgage, especially for first-time homebuyers. The family loan is also tax-advantageous: the interest on this loan is deductible, and the lender will receive more interest than if their money is in the bank. However, several conditions are attached to the family loan.
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