Tax-free “jubelton” disappears, parents will cross the bridge soon

AP

NOS . News

  • Lynn Kraniotis

    Economy Editor

  • Lynn Kraniotis

    Economy Editor

The wealthy Dutch quickly pass on the so-called “jubelton” to their children. Because as of January 1, you can no longer donate this €106,671 tax credit to someone to buy a house or pay off a mortgage.

Many notaries say they now have more clients than before. “The storm has really started,” says Rotterdam notary Anil Uttar. “I have about four or five clients on the floor for today.”

“I have more clients than usual for Jubelton,” says notary Miriam Bos of Groe, Friesland. “It’s also special that sometimes it’s about kids who are now looking for a home precisely because of that donation. Like: Let’s buy a house then.”

Not a full ton

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

“Their child has no immediate purchase plans yet, but nonetheless they are keeping the option open.” Mortgage consultant De Hypotheker also says he’s receiving more questions about Jubelton, particularly about posting the donation.

Three types of customers

According to Notary Autar, there are approximately three types of clients. “First of all, people who simply have a lot of money. It’s not just parents who give to children, but also grandparents.”

A second group had previously purchased a home for their child. “They can now give it to their children partially tax free.” Then there are people who donate to make sure the children have to pay a lower inheritance tax in the event of death.

Not all of the civil law notaries we spoke to say they are actually receiving more questions about Jubelton. Some expect to get busier as the year draws to a close.

Jubelton was temporarily introduced in 2013 to stimulate home sales, which were then put on hold due to the credit crunch. After more than a year, the chart disappeared for a while, but in 2017 it was introduced for a longer period of time. At that time it was still exactly 100,000 euros, and since then the amount has been indexed every year.

Housing price hike

In recent years, when housing prices have risen sharply, there has been a lot of criticism. Children of wealthy parents could bid on a house with tons in their pocket and this would drive up house prices. It would be unfair to beginners without rich parents.

“This is an important step that contributes to creating a more equitable playing field among juniors and reduces inequality,” Housing Minister De Jong said on the abolition of the death penalty.

Jubelton will have an impact on the housing market for years to come, because cancellation will be gradual. The government expects to receive an additional €8 million annually in gift tax and inheritance tax as a result of the program’s termination.

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