Careful and fiscally responsible

Whether you must pay inheritance tax depends on the value of what you inherit and your relationship to the deceased. Each category of heir has an exemption. If you inherit less than or equal to your exemption, you pay no inheritance tax on that acquisition. If you inherit more, tax is calculated on the amount above the exemption. The tax rate also differs by relationship to the deceased. A partner and a child are treated differently from a sibling or friend. Exemptions and rates are adjusted periodically, so the year of death must always be used.

The Dutch Tax Administration usually sends a letter within a few months after death stating whether an inheritance tax return must be filed. The deadline is in that letter. For deaths in 2026, the filing period is twenty months after the date of death. This is longer than for earlier years. Even if you have not received a letter, filing may be required if you inherit more than your exemption. It is therefore wise not to wait only for a letter, but to check yourself whether a return is needed. Extension may be possible under conditions.

The amount of inheritance tax depends on your relationship to the deceased and the value of your acquisition. For 2026, for example, the exemption for a spouse, registered partner or qualifying cohabiting partner is €828,035. For a child, foster child or stepchild, the exemption is €26,230. Parents, grandchildren and other heirs have other amounts. Tax may be due on the part of the inheritance above your exemption. The percentages also differ by category and amount. Because amounts can change each year, always use the year of death as the starting point.

If an executor has been appointed in the will, the executor generally files the inheritance tax return for all heirs. If there is no executor, the heirs can decide together who handles the return. One heir can file for all heirs, but in some situations heirs can also file separately. A joint return can be practical because it shows more clearly whether the entire estate has been processed correctly. Even if someone else prepares the return, it remains important that all necessary information about assets, debts and recipients is available and correct.

For the return, the value of the estate must first be determined. This may include bank balances, investments, a home, other assets, claims and possible foreign assets. Against this stand debts such as mortgages, loans and certain outstanding obligations. Normal funeral costs can sometimes be deducted, reduced by any funeral insurance payout. Not every cost arising during settlement is deductible. For example, notary fees for a certificate of inheritance and executor fees are not deductible as funeral costs according to the Tax Administration.