Dutch end of year tip #1
Make use of the jubelton this year!
Do you want to help somebody with the purchase of a primary residency? If you act fast, you can still make use of the gift tax exemption for an owner-occupied home; better known as the jubelton among the Dutch. The gift tax exemption will be abolished in 2024. But the exemption will be significantly reduced to €27,231 from 2023.
Give the tax-free donation in 2022
Do you want to help your child, grandchild, niece, or somebody else with the purchase of their own home? Then it is wise to make the gift still in 2022. Currently, there is a gift tax exemption of €106,671 if the receiver will use it for their house. However, from 2023, this will be reduced and from 2024, it will no longer exist at all.
Conditions of gift exemption own house
- The recipient is between 18 and 40 years old;
- the gift is used for a primary residency (purchase, repayment, renovation, ground lease, etc.)
Spread the gift over three years
The gift tax exemption (jubelton) will be reduced from the 1st of January, 2023. However, there is still a way to use it in 2023 and 2024. All you have to do is draw up a donation agreement and donate a part of the gift before the end of 2022 (even €1 is enough!). You can spread the tax-free donation over 3 years.
Has the recipient not yet bought a home? That does not matter! As long as he or she will do this within three years, the gift tax exemption remains valid. Isn’t this the case? Then you still have to pay gift tax over the amount.
We help with your Dutch taxes
Speak directly with one of our tax advisors
Could you use some help with your gift tax return? Or do you have questions about the jubelton? We are happy to help! Please, contact us using the details mentioned below.