How does Dutch inheritance tax (erfbelasting) work?

Erfbelasting is the Dutch inheritance tax levied on assets inherited from a deceased Dutch resident. The tax applies to the net value of what you receive above your personal exemption.

Exemptions for 2024: spouses and registered partners are exempt on the first €795,156. Children and grandchildren have an exemption of €22,918 each. For children who are financially disabled (sick or disabled), the exemption is €68,740. Grandchildren have a €22,918 exemption. For other heirs, the exemption is only €2,658.

Rates above the exemption depend on the relationship. For partners and children: 10% on the first €152,368 and 20% on the remainder. For other relatives (siblings, nieces, nephews) and unrelated heirs: 30% on the first €152,368 and 40% on the remainder.

The estate is valued at the market value on the date of death. The inheritance tax return must be filed within eight months of the death. The Belastingdienst administers erfbelasting; a notary typically coordinates the estate settlement and tax filing.