Inheritance and succession law are topics that, sooner or later, affect every family. In this article, we’ll explore the fundamentals of inheritance law and the Succession Act, providing a clear and detailed overview for those seeking to better understand how inheritances are managed in the Netherlands.
Fundamentals of Inheritance Law
Inheritance law deals with the transfer of a person’s estate after their death. The nalatenschap, or inheritance, includes all assets and debts of the deceased. According to the law, this inheritance is transferred to the heirs.
If the deceased did not leave a will, the statutory rules of inheritance law apply. This system determines who the legal heirs are and how the estate is distributed. Heirs are divided into four groups, starting with the spouse and children, followed by parents, siblings, and grandparents.
Intestate Succession:
When someone dies without leaving a valid will (intestate), Dutch law determines how his or her estate will be distributed among the heirs. The order of priority for intestate succession is as follows:
- Spouse or Registered Partner: The surviving spouse or registered partner inherits the entire estate if there are no children.
- Children: If there are children, they inherit in equal shares. If a child has predeceased the deceased, his or her share is passed on to his or her own descendants (grandchildren).
- Parents and Siblings: If there are no surviving children, the parents inherit. If the parents are no longer alive, the siblings inherit.
- Most Distant Relatives: If there are no surviving parents, siblings or children, more distant relatives inherit in a specific order (e.g., grandparents, aunts, uncles, cousins).
If there are no heirs in any of the four groups, the estate passes to the Dutch State.
Wills and Bequests
A will allows the deceased to specify a different distribution of his or her estate. Those who are not heirs but receive something by will are known as legatees. For cohabitants without a will, it is possible to establish agreements through a cohabitation contract, although they will not automatically inherit.
Testamentary Succession:
A valid will allows the decedent to specify how his or her estate will be distributed. Some common provisions in a will are:
- Specific Bequests: The decedent may leave specific assets (e.g., a house, jewelry) to specific persons.
- Monetary Bequest: A fixed sum of money or a percentage of the estate may be designated for a particular person or entity.
- Executor: The will may appoint an executor to administer the estate and ensure its distribution according to the decedent’s wishes.
Inheritance Tax (Successiewet)
The Successiewet regulates inheritance taxes. Heirs may be subject to inheritance taxes, although there are exemptions based on the relationship to the deceased. For example, spouses and children have higher exemptions than more distant heirs.
a. Tax Rates:
In the Netherlands, inheritance tax rates vary depending on the relationship between the deceased and the heir. You can check updated rates on the belastingdienst website. Remember, inheritance tax is only paid if the value of the inheritance exceeds your exemption.
Rates for 2025:
| Value of Inheritance | Partner, Child (with disability) | Grandchildren, Later Descendants | Other Heirs |
|---|---|---|---|
| up to €154,197 | 10% | 18% | 30% |
| over €154,197 | 20% | 36% | 40% |
b. Exemptions and Deductions:
Certain exemptions and deductions apply. Check the updated figures on the belastingdienst website.
Exemption Amounts for 2025:
| Heir Type | Exemption Amount |
|---|---|
| Spouse, registered or cohabiting partner | €804,698 |
| Child, adopted child, or stepchild | €25,490 |
| Grandchild | €25,490 |
| Great-grandchild | €2,690 |
| Child with disability | €76,453 |
| Parent | €60,359 |
| Joint inheritance with partner | €60,359 (combined exemption) |
| Other heir (e.g., sibling, friend) | €2,690 |
If the value of your inheritance is equal to or less than your exemption, you do not pay inheritance tax.
If the value exceeds your exemption, you pay tax on the amount above your limit. The rate depends on the value and your relationship to the deceased.
Tax Calculation Examples
Partner Inheriting
A deceased person leaves an inheritance of €650,000. Their partner is the sole heir. How much inheritance tax is owed?
- Inheritance value: €650,000
- Exemption for partner in 2025: €804,698 Since the inheritance does not exceed the exemption, no inheritance tax is due.
Child Inheriting
A child inherits €200,000 from a deceased parent. How much inheritance tax is owed?
Step 1: Calculate taxable amount
- Total inheritance: €200,000
- Exemption for children in 2025: €25,490
- Taxable amount: €200,000 − €25,490 = €174,510
Step 2: Apply tax brackets
- First bracket: up to €154,197 at 10% → €154,197 × 10% = €15,419.70
- Second bracket: remaining €20,313 at 20% → €20,313 × 20% = €4,062.60
Total tax due: €15,419.70 + €4,062.60 = €19,482.30
Foreign Inheritances
You may not have to pay inheritance tax on foreign inheritances if:
- The value of the inheritance is equal to or below the exemption (see above).
- The deceased was not Dutch and did not live in the Netherlands.
- The deceased was Dutch but died more than 10 years after leaving the Netherlands.
- More details are available on the belastingdienst website.
Practical Tips
- Tax Exemption: It is crucial to know the applicable exemptions to avoid paying more taxes than necessary.
- Unexpected Debts: Heirs have legal options to handle unexpected debts without affecting their personal estate.
- Charitable Institutions: Donations to charitable institutions may offer tax advantages for both the donor and the recipient.
This article is only a summary and cannot replace professional legal advice. If you are faced with an inheritance situation, we recommend that you seek the assistance of a lawyer specialized in inheritance law.
Remember that it is essential to seek professional advice when dealing with inheritance matters. Consulting a notary or tax advisor can ensure compliance with Dutch law and optimize tax implications.
In summary, Dutch inheritance law regulates both intestate and testamentary succession, while inheritance tax rates and exemptions
