Tax-free ‘jubelton’ disappears, parents will soon cross the bridge

AP

NOS News

  • Leanne Kraniotis

    finance editor

  • Leanne Kraniotis

    finance editor

Rich Dutch quickly pass on the so-called ‘jubelton’ to their children. Because from January 1, you can no longer donate this tax-free 106,671 euros to someone to buy a house or pay off a mortgage.

Several notaries say they now have more clients than before. “It’s really starting to storm”, says Rotterdam notary Aniel Autar. “I have about four or five clients across the floor for this one day.”

“I have more customers than usual for the jubilation”, says notary Mirjam Bos from Grou, Friesland. “It’s also special that sometimes it’s about children who are now looking for a house precisely because of that donation. Like: Let’s buy a house.”

‘Not a whole ton’

“People are very involved in it, we get a lot of questions about it,” says Lucienne van der Geld of Netwerk Notarissen, a chain of 150 offices. She also notes that some don’t immediately donate a ton, but a smaller amount. Because they can top it to the maximum in the next two years.

“Their child doesn’t have immediate purchase plans yet, but with that, they’re keeping the option open.” Mortgage adviser De Hypotheker also says it receives more questions about the cheering tone, especially about spreading the donation.

Three types of customers

According to notary Autar, there are roughly three types of clients. “First, people who simply have a lot of money. Not just parents who give to children, but also grandparents.”

Another group has previously bought a home for their child. “They can now give it to their child partially tax-free.” And then there are people who donate to ensure that children have to pay less inheritance tax on death.

Not all civil notaries we spoke to say they are already getting more questions about the cheer tone. Some expect to get busier as the year draws to a close.

The cheer tone was temporarily introduced in 2013 to stimulate house sales, which had then been put on hold by the credit crunch. After more than a year, the scheme disappeared for a while, but in 2017 it was introduced for a longer period. Back then it was still exactly 100,000 euros, since then the amount has been indexed every year.

Drive house prices up

In recent years, when house prices rose sharply, there was much criticism. Children of wealthy parents could bid more on a house with a ton in their pocket, and that would push house prices up. And it would be unfair to beginners without rich parents.

“This is an important step that contributes to a fairer playing field among starters and reduces inequality,” Housing Minister De Jonge said of the abolition.

The jubilant tone will have an impact on the housing market in the coming years, because the abolition will take place gradually. The government expects to receive an additional 8 million euros annually in gift tax and inheritance tax as a result of the scheme’s termination.

Leave a Comment