How it works
When shares in a family business are given or inherited, gift or inheritance tax is due on their value. The heirs may have to sell the business to pay that tax. Under the BOR, the largest part is exempt. In 2026 the first €1,543,500 of business value is fully exempt, and 75% of the value above that.
The scheme applies to real business assets. Investments, excess cash and rented property inside the company fall outside it. For a gift, the giver must have owned the shares for at least five years (one year in case of death). The receiver must keep the shares and the business going for at least three years (five years for gifts before 2025).
Since 2025 the receiver must be at least 21 for a gift, and the rules on which assets count as business assets are stricter. Since 2026 the exemption applies to ordinary shares only, from 5% of the ordinary share capital. Longer ownership periods apply to givers who set up a structure late in life.
With the BOR and the deferral of box 2 income tax, many Dutch families pass their business to the next generation intact. Start planning years ahead, because of the ownership period.
Example
A father gives his daughter the shares of the family company, worth €3 million in business assets. The first €1,543,500 is fully exempt. Of the remaining €1,456,500, 75% is exempt. Gift tax is due on about €364,000 of the €3 million.
The figures
Every rate for 2026 is listed in Netherlands tax rates 2026, and the figures for 2027 are in Netherlands tax rates 2027.
Questions people ask
Does the BOR apply to a holding with an operating company?
Yes, when the holding owns at least 5% of the operating company. The tax authority then looks through the holding at the assets of the operating company. Passive investments in the holding stay outside the exemption.
Does the BOR apply to foreign heirs?
The BOR is part of Dutch gift and inheritance tax. This tax applies when the giver lives in the Netherlands. If the giver is a Dutch national, the tax also applies up to ten years after the giver left the Netherlands. For this tax, the residence of the giver is important. The residence of the heir has little effect.
Holdwise, Hoofddorp. We keep this definition in line with our Dutch and German glossaries, and the figures are those for the tax year 2026. Updated 30 September 2026.
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