How it works
When shares in a family business are given or inherited, gift or inheritance tax is due on their value. That tax alone can force the heirs to sell. The BOR exempts the largest part: in 2026 the first €1,534,500 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. The giver must have owned the shares for at least five years for a gift (one year in case of death), and 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, and longer ownership periods apply to givers who set up a structure late in life.
Together with the income tax deferral for the box 2 claim, the BOR is the reason many Dutch family businesses pass to the next generation intact. Planning starts 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 €1,534,500 is fully exempt; of the remaining €1,465,500, 75% is exempt. Gift tax is due on about €366,000 of the €3 million.
The figures
All 2026 figures: Netherlands tax rates 2026 · the 2027 figures: 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 assets are then looked through to 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, which applies when the giver lives in the Netherlands or has left within the past ten years (Dutch nationals). Where the heir lives changes little; where the giver lives changes everything.
Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.
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