Need to cancel the gift exemption for an owner-occupied home?
Jubelton was introduced in 2010 in the middle of the housing crisis to put an end to falling home prices. We are now in a crisis of a different kind, with housing prices rising faster than ever. Wealth inequality is (also) a point of interest in the Netherlands, and the possibility to easily transfer tax-free capital to the next generation (or third parties) through increased gift exemption for owner-occupied homes contributes to this.
Jubelton applies to a gift from a parent to a child, as well as to a gift to a third party. In any case, it is required that the person receiving the gift be between 18 and 40 years of age and that the gift is spent on the purchase or renovation of the home inhabited by the owner, repayment of the home acquisition debt or assignment of rights. A land lease, building or house lease contract. The jubelton may be distributed over three (3) consecutive calendar years, but then the person receiving the gift (or their partner) must not be older than 39 in the past year. It is also possible to receive the entire donation (€106,671) in one go, but (part of it) can be spent in the next two (2) years.
No other conditions may be attached to the donation (such as cancellation of the donation). A donation is revocable if it is also determined at the time the donation is proven to be reversible. Withdrawal is usually included in the case where the person receiving the gift dies before the donor. The donor can then withdraw the donation. There is one exception to the main rule that no other conditions should be attached to the donation, i.e. the condition that the donation expires if the donor does not spend the time specified in the house inhabited by its owner. However, this condition can be linked to a donation in favor of the dwelling inhabited by the owner.
Exploiting the Possibilities with Jubelton
In 2022, Tax and Customs Administration will no longer have the ability to amend both the gift and statutes tax return. For this reason, it was decided that (only) in 2023 the exemption will be reduced to the increased amount of the one-time exemption between parents and children (€27,231) and the exemption will be completely abolished as of January 1, 2024.
If you intend to utilize the Jubelt barrel, it is recommended to donate in 2022 so that the exemption is used optimally. At present, the gift can be distributed over three (3) years. This is especially attractive in the case where the donor does not have the (financial) possibility to donate Jubelton at once.
It is not yet clear if this option will (completely) continue to exist, and whether the gifted may post a gift for the owner-occupied home he acquired in 2022 over the course of 2023 and 2024.
It is therefore uncertain whether the donation in 2022 in favor of the home inhabited by the owner can be supplemented by donations of up to a total amount of 106,671 euros in subsequent years (2023 and 2024). This depends on how the repeal is designed, and whether there are transitional provisions. The government has not yet decided on this.
If the donation is distributed over several years, the exemption for the dwelling inhabited by the owner in the first year (2022) will replace the general exemption. In the following two (2) years you are entitled to general exemptions (anno 2022 €5,677).
Other (Increased) and Concurrent Exemptions for Owned Home
In addition to Jubelton, in the parent-child relationship, there is also the option of making an increased donation for leisure (€27,231) or an expensive study (€56,724). These increased exemptions do not apply with respect to third parties. Here, too, the requirement that the child (or partner) must be between 18 and 40 years old applies. However, the increased exemption may only be invoked once. If it is decided to give an additional gift to a child for leisure, the increased exemption for the home occupied by the owner cannot be invoked for the difference between €106,671 and €27,231.
Tax return for gifts
Although a gift tax is not due, the person receiving the gift must claim the extended homeowner’s home exemption on the gift tax return before March 1 of the calendar year following the calendar year in which the gift was made. If the gift was made in 2022, the gift tax return must be filed before March 1, 2023.
exclusion and inclusion clause
Finally, the so-calledexclusion and inclusion clause“, any item that can be attached to any gift (or inheritance). This clause ensures that what the child (or a third party) receives from the donor remains the private property of the child. This ensures that the gift does not have to be shared with the partner. If the child’s relationship ends due to the death of that child , it can be determined that the exclusion clause lapses and the inclusion clause ensures that the gift can nevertheless be settled with the child’s partner, so that the inheritance tax is deducted in a balanced manner.