Netherlands: Capital Gains Tax Exemptions Explained
Individuals and Companies Can Benefit from Exemptions
In the Netherlands, capital gains tax is a significant levy, but individuals and companies can benefit from exemptions. Under the current tax code, residents and non-residents are not subject to taxation on capital gains and investment income, with the exception of specific cases outlined in box 2.
Exemptions for Individuals
One key exemption applies to the sale of personal assets. When an individual sells a home they have lived in for at least six months, the capital gain is tax-free up to a certain amount. This exemption is intended to support homeowners and reduce the financial burden of moving.
Exemptions for Companies
Companies can also benefit from exemptions on capital gains tax. For instance, the participation exemption allows companies to avoid taxation on gains from the sale of shares in qualifying companies. This exemption is designed to promote investment and stimulate economic growth.
Other Relevant Information
It's important to note that while capital gains tax is generally exempted in the Netherlands, income from other sources, such as employment or business profits, is subject to taxation. It's recommended to consult with a tax advisor to fully understand the tax implications of specific transactions.
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