Key tips for individuals

The tips are based on the Tax Plan 2027 as announced by the Dutch government on Budget Day. The Dutch House of Representatives and the Dutch Senate still have to vote on the Tax Plan 2027.   

Donations: profiting from (annual) exemptions and/or rates  

A donation reduces your assets and allows you to take full advantage of exemptions and progressive rates for the gift tax. Annually, you can donate up to € 6,908 (2026) tax-free to your children. In all other cases, you can make an annual tax-free donation of € 2,769 (2026). For donations from parents to children up to the age of 40, a one-time increased gift tax exemption of € 33,129 (2026) applies under certain conditions.  

If a donation exceeds the exemptions, the excess is taxed. For excesses up to € 158,669 (2026), the rate is set at 10 per cent (donation to partner or child), 18 per cent (grandchild) or 30 per cent (others). If a donation exceeds the € 158,669 threshold, the remaining amount will be taxed at a 20 per cent (donation to partner or child), 36 per cent (grandchild) or 40 per cent (others) tax rate.

Donation via notarial deed of debt  

By donating via a so-called notarial deed of debt ('schuldigerkenning’), the donated amount is, as it were, immediately lent back from the recipient. With a donation via a notarial deed of debt, the donor is fiscally obliged to pay 6 per cent interest to the recipient annually. This interest must actually be paid. A favourable effect is that the obligatory annual interest payment actually constitutes a gift tax-free asset transfer. Of course, the capacity to pay the annual lifelong interest obligation as well as the consequences this may have (also in a later stage of life) on the donor's asset position must be taken into account.  

The acknowledged amount of debt is a claim for the person receiving it. In principle, this claim is only due upon the death of the donor. The amount of debt constitutes a debt in box 3 of the income tax for the donor and an asset in box 3 for the recipient. Currently, debts are subject to box 3 taxation at a lower flat rate than corresponding receivables (unless the actual return is lower). With this, box 3 neutrality at the family level is lost in principle. However, if potential savings on inheritance tax and the annual interest payment are considered, donating via notarial deed of debt out of generosity may still be an interesting option. 

Please note that in the 2026 Spring Memorandum, the notarial deed of debt is explicitly referred to as a ‘remarkable tax arrangement’. Two possible concrete measures are described. Firstly, replacing the fixed interest rate of 6 per cent with an interest rate based on the market rate (estimated at 3 per cent), which is adjusted periodically. In addition, it is proposed that the notarial deed of debt should, upon death, be included in the estate after all. The gift tax paid previously may be set off against the inheritance tax to prevent double taxation. It is not yet clear whether these measures will be introduced and, if so, when.

Interest payment due to donating via notarial deed of debt  

When a donation is made via a notarial deed of debt, the donor is fiscally required to pay 6 per cent interest to the recipient annually. In order to prevent the donor from retaining the benefit of the donation, the interest due must be paid. The end of the year is a suitable time to pay this gift interest. Keep the bank statements showing the interest payments in your administration. 

Charitable donations  

If you make a private donation to a non-profit organization (a public benefit organization - ‘ANBI’, or a support foundation for socially beneficial organizations - ‘SBBI’), you can under certain conditions apply the gift deduction for personal income taxation purposes. A distinction is made between regular donations and periodic donations. Periodic donations must be established in writing for a period of at least five years and the deduction is limited to € 1,500,000 per year. The deduction of ordinary donations is limited by a threshold and a ceiling that depends on your income.  

By donating to charities this year, you can save on personal income tax. Furthermore, if you make a donation to a cultural public benefit institution the tax deduction will consist of the amount of the donation increased by 25 per cent (up to a maximum increase of € 1,250). 

Charitable donations from own company  

If you make a donation from a private limited company (BV) to a charitable organization (a public benefit organization - ‘ANBI’, or a support foundation for socially beneficial organizations - ‘SBBI’) without a business motive, the donation will be classified as a taxable dividend payment to the shareholder. This donation will only be treated as a taxable dividend payment if it exceeds the maximum gift deduction in corporation's income tax return (this amounts to a maximum of 50 per cent of the profit, with a maximum of € 100,000).  

Optimising box 3 position  

Currently, there are two ways to determine the return on your assets for personal income tax purposes in box 3. Under the statutory tax regime, your income in box 3 is determined on a flat rate basis. However, you may also use your actual return if it is lower than your flat rate return. The Dutch Tax Authorities published a special form (the Statement of actual return or ‘Opgaaf werkelijk rendement’) which must be utilised to demonstrate your actual return in box 3 for the years up to and including 2024.  From 2025, you will be able to include the actual return in your personal income tax return. 

For the 2021 tax year, there is a point of attention: should your actual return in 2021 be lower than your flat rate return, you have to submit the ‘Statement of Actual Return’ form to the Dutch Tax Authorities no later than this year (2026). 

You can still optimize your flat rate return for the 2027 tax year in 2026, because your assets on 1 January 2027 will determine your flat rate return for the whole 2027 tax year. For example, by making gifts or larger purchases in 2026, you will reduce your box 3 taxation in 2027. 

Dividend payments  

The government announced a proposal to lower the highest box 2 income tax rate for dividend payments from 31 to 29 per cent as of 1 January 2027. During 2026, this rate applies to incomes above € 68,843 (€ 137,686 for tax partners). The lower box 2 rate of 24.5 per cent (for incomes up to € 68,843 / € 137,686) may possibly be reduced to 23.5 per cent. If you are considering a dividend payment that exceeds the first bracket, you may consider spreading this dividend payment over 2026 and 2027 in order to take advantage of the low rate in 2026 and 2027 or to wait until 2027. Please note that dividend payments may also affect the amount of your general income tax credit and elderly income tax credit. 

Excessive borrowing from own company  

Since 2023, excessive borrowing from your own company has been discouraged by the introduction of specific legislation. Substantial interest holders are required to pay (additional) personal income tax in box 2 if they have borrowed more than € 500,000 (2025: € 500,000) from their own company on the reference date (31 December 2026). Loans to related persons can also count towards this. The levy can be avoided by repaying debts to your own company before the end of this year. Reducing your debts may also be useful for your personal financial position. 

Lower real estate transfer tax rate for non-residents 

If you are considering purchasing a property in which you will not be living yourself (for example, as a holiday home or for renting out), it is important to bear in mind the real estate transfer tax rate. The 2027 Tax Plan proposes to reduce the rate for properties in which the buyer will not live themselves from 8 per cent to 7 per cent with effect from 1 January 2027. If it is possible to defer the transfer of the property until 2027, you may be able to save on real estate transfer tax. 

Salary for directors-major shareholders  

If you work for your own company, you are expected to receive a salary that is ‘customary’. This customary salary is subject to Dutch payroll taxes. For taxation purposes, the customary salary is at least the highest of the following amounts:  

• The salary from the most comparable form of employment;  
• The salary of the most earning employee within the company;  
• The statutory amount of € 58,000 (2026).  

If you can prove that the highest of these three amounts exceeds the salary from the most comparable form of employment, the customary salary is set at the salary from the most comparable form of employment. The end of the year is a good moment to check whether your salary from your own company meets the criteria for the customary salary regime. 

Execution of periodic settlement clause  

If the prenuptial agreement includes a periodic settlement clause, it is advisable to execute it in a timely manner. On the basis of a periodic settlement clause, spouses must divide the income saved in the past year with each other according to their agreement. The end of the year is an appropriate time to draw up the annual financial balance. In practice, spouses often fail to give effect to a periodic settlement clause during the marriage. In that case, it is advisable to clean up. I.e. to settle the mutual claims between the spouses.

Want to know more about the above year-end tips?  

Would you like to know more about any subject from these year-end tips? Your Forvis Mazars tax advisor is more than happy to assist you further.