Two taxes, one law
Gift tax and inheritance tax share the Successiewet 1956. The rates and brackets are identical: 10 / 20 % for partner and child, 18 / 36 % for grandchild, 30 / 40 % for others. What differs are the exemptions.
Annual gift exemptions
You can give tax-free per calendar year:
- to a child: around 6,700 EUR;
- to a grandchild or third party: around 2,700 EUR.
For a child there is also a one-off enhanced exemption for specific purposes:
- freely usable (child between 18 and 40): around 32,000 EUR;
- for an expensive education: around 67,000 EUR.
The home-purchase enhanced exemption ("jubelton") was abolished from 2024.
Why gifting can save tax
Imagine a parent has 200,000 EUR they want to leave to a child:
- All at once at death: child receives 200,000 EUR. Exemption 25,000. Taxable 175,000. Tax in bracket 1: 17,500 EUR.
- Spread over 10 years: 6,700 EUR per year tax-free = 67,000 EUR free. Remaining 133,000 EUR inherited later. Exemption 25,000. Taxable 108,000. Tax: 10,800 EUR.
Saving in this example: about 6,700 EUR. With larger amounts or multiple children it can run to tens of thousands.
The 180-day rule
A gift made in the 180 days before death is fiscally treated as an inheritance. Any gift tax already paid is credited against inheritance tax.
The reason: lawmakers want to prevent last-minute large gifts that would otherwise dodge tax.
Paper gift (schenking op papier)
A parent can gift an amount on paper to a child without transferring cash. The amount becomes an interest-free debt that the parent owes the child. The parent must then pay 6 % interest per year in cash to the child, otherwise the gift is rolled into the estate at death.
A paper gift can be a good way to gradually transfer wealth without giving up liquid funds, but must be properly documented via a notary.
Tip
Start gifting early. Waiting until the last year rarely saves anything because of the 180-day rule. Discuss with a notary and keep yearly gifts in a simple register for the heirs.