Dutch immigrants share: Do children need to pay taxes when they receive property gifts and financial support from their parents?

If parents make gifts more than once in a year, the total tax exemption is limited to 5,320 euros, and gift tax is required for the excess.

In addition, both parents are regarded as the same donor. That is to say, when the combined amount of gifts from the two parents exceeds 5,320 euros, you need to pay gift tax.

You can receive a one-time tax-free gift of 25,526 euros from your parents, but this can only happen once in your life and the following conditions must be met:

Your age is between Between 18 and 40 years old, or your partner’s age between 18 and 40 years old, including 40 years old;

It is not allowed to accept an additional tax-free gift of 5,320 euros this year;

No tax-free gifts of more than 5,320 euros were received from parents in the previous year.

Of course, both parents are considered the same donor.

Do you need to pay taxes if you receive financial aid from your parents to buy a house? If the financial aid is less than 100,000 euros, you do not need to pay taxes. The prerequisites are as follows:

? You use the money to buy a house or Renovation, or repaying the mortgage or remaining debt, or using it to purchase land or the building itself;

? You or your partner are between 18 and 40 years old, including 40 years old;

?You used this money before 2020;

?You did not receive a tax-free gift of more than 5,320 euros from your parents in the previous year;

?You must provide confirmation Written proof that the gift amount has actually been paid and used for your own housing.

If parents meet the following conditions, their children do not need to pay any gift tax or file a tax declaration on the monetary gifts or house purchase assistance they receive (regardless of the amount):

When the gift occurs, the parents do not live in the Netherlands;

The parents are Dutch, but have left the Netherlands for more than 10 years;

The parents are not Dutch, but have been in the Netherlands Live in the Netherlands and have been away from the Netherlands for more than one year.