Will the jubilee ton now be abolished?
The jubilee
Dutch law includes a tax scheme that stipulates that parents or third parties, under certain conditions, can provide tax-advantaged support to someone purchasing a home, renovating it, or paying off mortgage debt. Normally, a gift is subject to gift tax, but if the money is donated for homeownership, it can be tax-free up to €105,302 under certain conditions. This is called the "jubelton" (jubilee gift).
Abolition of jubilee ton
Both in the media and in legal literature, there are increasing calls to abolish this tax scheme, as it creates inequality of opportunity in the housing market. This would mean the loss of an attractive opportunity to transfer assets without paying gift tax. Are there any truth to the rumors about its possible abolition?
Act now. Take action.
It was recently announced that, given the caretaker government's current status, a decision on the potential abolition of the gift tax exemption will not be made this year. The exemption will be abolished no earlier than January 1, 2023. But a year flies by, and if you're considering a large gift for your child's home, some preparation is usually required.
Customization
If you intend to make a large gift to your children (or another person between the ages of 18 and 40) for their home, it might be wise not to wait too long. This gift can also be made in installments: for the exemption to apply, it's not required to give the entire amount at once.
Contact
Get advice on this topic now. Visit us or call us. An initial (phone) consultation is free. To schedule an in-office meeting or a video call, please call +31 (0)10 44 53 777. We look forward to seeing you.
This article is taken from 'Met Recht Geregeld' (www.metrechtgeregeld.nl), a product of FBN Juristen.
This article should not be considered legal advice. FBN Lawyers and MAES Civil-Law Notaries take the utmost care in the content of these articles, but accept no liability for any incompleteness or inaccuracy of an article, nor for any consequences thereof.
Dutch law includes a tax scheme that stipulates that parents or third parties, under certain conditions, can provide tax-advantaged support to someone purchasing a home, renovating it, or paying off mortgage debt. Normally, a gift is subject to gift tax, but if the money is donated for homeownership, it can be tax-free up to €105,302 under certain conditions. This is called the "jubelton" (jubilee gift).
Abolition of jubilee ton
Both in the media and in legal literature, there are increasing calls to abolish this tax scheme, as it creates inequality of opportunity in the housing market. This would mean the loss of an attractive opportunity to transfer assets without paying gift tax. Are there any truth to the rumors about its possible abolition?
Act now. Take action.
It was recently announced that, given the caretaker government's current status, a decision on the potential abolition of the gift tax exemption will not be made this year. The exemption will be abolished no earlier than January 1, 2023. But a year flies by, and if you're considering a large gift for your child's home, some preparation is usually required.
Customization
If you intend to make a large gift to your children (or another person between the ages of 18 and 40) for their home, it might be wise not to wait too long. This gift can also be made in installments: for the exemption to apply, it's not required to give the entire amount at once.
Contact
Get advice on this topic now. Visit us or call us. An initial (phone) consultation is free. To schedule an in-office meeting or a video call, please call +31 (0)10 44 53 777. We look forward to seeing you.
This article is taken from 'Met Recht Geregeld' (www.metrechtgeregeld.nl), a product of FBN Juristen.
This article should not be considered legal advice. FBN Lawyers and MAES Civil-Law Notaries take the utmost care in the content of these articles, but accept no liability for any incompleteness or inaccuracy of an article, nor for any consequences thereof.
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