Inheritance Tax (Erfbelasting)
Inheritance tax (erfbelasting) is the tax you pay on an inheritance. The amount depends on two factors: the value of what you inherit and your relationship to the deceased. The closer the family relationship, the higher the exemption and the lower the rate. For partners, the 2025 exemption is approximately €795,156. For children, the exemption is approximately €25,187, and for grandchildren approximately €25,187. For other beneficiaries, the exemption is only approximately €2,658. The rate varies from 10% to 40%: partners and children pay 10% to 20%, while more distant relatives and non-relatives pay 30% to 40%. The inheritance tax must be declared within 8 months of the death. The executor of the will or the heirs are responsible for the declaration. With a complex estate involving business assets or foreign real estate, the declaration can become complicated.
Example
Your father passes away and leaves €200,000 to you as a child. The exemption is €25,187, so you pay inheritance tax on €174,813. On the first €138,641 you pay 10% = €13,864. On the remaining €36,172 you pay 20% = €7,234. Total: €21,098 in inheritance tax.
Why does this matter?
Inheritance tax can be a substantial amount, especially for larger inheritances or if you are not close family. By planning smartly – for example through lifetime gifts – you can significantly reduce inheritance tax. Consider professional advice in good time.
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