30 January 2020
Inheritance tax and gift tax – what are the rates and exemptions for 2020?
I am regularly approached with questions about the rates and exemptions for inheritance tax and gift tax in 2020.
Below I will show the rates and exemptions for inheritance tax and gift tax in 2020.
This post was reviewed and updated on 13 October 2020
Gift and inheritance tax rates 2020
| Value of donation | Partner and (foster or step) children | Grandchildren and other descendants | Other persons |
| € 0,– and € 126.723,– | 10% | 18% | 30% |
| € 126.724,– and above | 20% | 36% | 40% |
Exemptions for the 2020 inheritance tax
You do not pay inheritance tax on a fixed amount. This fixed amount is the exemption. The size of the exemption depends on your relationship with the deceased. In the table below, you can see which exemption applies. First, deduct the exemption from your inheritance and then take the percentage (gift and inheritance tax rate – above) that applies to your situation. Then calculate the inheritance tax with this percentage.
Charities recognised by the Tax Authorities (ANBIs) do not have to pay tax on a gift or inheritance that they have received.
Exemptions for the gift tax 2020
You do not pay gift tax on a fixed amount. This fixed amount is the exemption. The size of the exemption depends on your relationship with the donor. In the table below, you can see which exemption applies. First, deduct the exemption from your donation and then take the percentage (gift and inheritance tax rate – above) that applies to your situation. Then calculate the gift tax with this percentage.
| You are: | Amount of the exemption in 2020 |
| Spouse, registered partner or cohabiting partner | € 661.328,– |
| Child, foster child or stepchild and grandchild | € 20.946,– |
| Great-grandchild | € 2.208,– |
| Child with a disability | € 62.830,– (conditions apply) |
| Parent | (If both you and your partner inherit, the exemption is € 49,603 for you both combined.) |
| Other heir (for example brother or sister) | € 2.208,– |
One-time increased exemption
One-off increased exemption for children
Children between the ages of 18 and 40 can donate a one-off amount of € 26,457, which is increased to € 55,114 if the amount is used to finance a study and to € 103,643 if the amount is used for the child’s own home.
One-off increased home exemption
It is possible to donate a one-off amount of € 103,643 to persons between 18 and 40 years old if the amount is used for that person’s own home.
Make a declaration for inheritance or gift tax
You will receive a declaration form from the Tax Authorities for inheritance tax. For the gift tax, you must request the form yourself from the tax authorities. GMW lawyers can assist you with both gift tax and inheritance tax returns. Please contact us for assistance.
This weblog was written in close collaboration with Bianca Kok-Beekhuizen, legal assistant in the family and inheritance law section. For more information, please contact Sieta Autar-Matawlie or Bianca Kok-Beekhuizen (070-3114064).
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