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

• Leanne Kraniotis

  economics editor

The wealthy Dutch quickly pass on the so-called “jubelton” to their children. Because from January 1, you can no longer donate these 106,671 euros tax-free to someone for the purchase of a house or to pay off a mortgage.

Several notaries claim to have more clients than before. “It is really starting to storm,” says Rotterdam notary Aniel Autar. “I have about four or five customers in the room for this one day.”

“I have more clients than usual for jubelton,” says notary Mirjam Bos from Grou, Friesland. “It’s also special that sometimes it concerns the children who are now looking for a house for that donation. Like: let’s buy a house then.”

“People are very involved, 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 donate not a ton immediately, but a smaller amount. Because they can exceed it to a maximum in the next two years.

“Their baby doesn’t have any immediate purchase plans yet, but that keeps the option open.” Mortgage advisor De Hypotheker also says he gets more questions about the jubelton, especially the spread of the donation.

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

A second group has already bought a house for their son. “Now they can give it to their son in part tax free.” And then there are people who donate to make sure their children have to pay less inheritance tax in the event of death.

Not all civil law notaries we have spoken to say they are already receiving more questions about jubelton. Some expect to get busier as the year really draws to a close.

The jubelton was temporarily introduced in 2013 to stimulate home sales, which were then suspended due to the credit crisis. After more than a year, the regime 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, since then the amount has been indexed every year.

In recent years, when house prices have risen dramatically, there has been a lot of criticism. The children of wealthy parents could bid more for a home with a ton in their pocket and that would raise house prices. And it would be unfair for beginners without wealthy parents.

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

The jubelton will have an effect on the housing market for years to come, as the abolition will be gradual. The government expects to receive an additional € 8 million per year in gift and inheritance taxes following the end of the regime.