As of 1 January 2026, a broad package of tax measures will take effect. The government’s stated aim is to make the tax system simpler, fairer and more future-proof, with a stronger emphasis on the fair taxation of wealth.

Below are the main changes affecting housing, assets, inheritance and gifts.

Assets and housing

Accelerated phase-out of the Hillen Act

The Hillen Act,which provides a deduction for a (nearly) fully repaid mortgage, will be phased out faster. The scheme will now end in 2041 instead of 2048.

Lower transfer tax for second homes in 2026

For those purchasing a second home in 2026 as an investment or holiday property, there is a benefit: the property transfer tax will be reduced from 10.4% to 8%.

Inheritance and gifts

Tackling unequal asset division shortly before death or divorce

The government is targeting structures where partners divide assets unequally shortly before death or divorce to reduce tax. Going forward, an equal division will be assumed, regardless of what is contractually recorded.

This is relevant not only for surviving relatives, but also for partners and families who have incorporated asset division strategies into their planning.

A longer deadline for inheritance tax returns

From 1 January 2026, surviving relatives will have significantly more time to file an inheritance tax return:

• Current deadline: 8 months

• New deadline: 20 months (from 2026 onwards)

In practice:

• If someone passes away on or after 1 January 2026, the 20-month deadline applies.

• Only after those 20 months will the Tax Authorities charge interest on overdue tax if the return has not yet been fully submitted.

This extension offers more breathing room during an often emotional period, but it remains wise to start the settlement process in good time.

Gifts shortly before death: taxed only via inheritance tax

A key simplification applies from 1 January 2026: gifts made in the last 180 days before death will be treated exclusively as part of the estate.

That means:

• The gifted amount is included for inheritance tax purposes.

• No separate gift tax return is required.

Transitional rule

This measure also applies to gifts made within 180 days before 1 January 2026, i.e. after 5 July 2025. This is intended to avoid double taxation procedures and make the system clearer for families and advisers.

Equal tax treatment for all biological children

A socially significant change: all biological children will have equal rights for gift and inheritance tax purposes, even if there is no legal relationship.

They will qualify for:

• the same tax exemptions for gifts and inheritances, and

• the same lower tax rates for inheritance and gift tax.

Conditions
Equal treatment applies if:

• the biological relationship is proven by a DNA test, and

• the child is included in the will.

Partners may pay more tax after unequal asset distribution

The most far-reaching change concerns partners who end up with an unequal share of assets under a community of property arrangement or a settlement clause in prenuptial agreements.

From 16 September 2025 at 4:00 p.m., the following will apply:

Any amount a partner receives above 50% of the community will be taxed as an acquisition by way of gift or inheritance.

Example

Marco and Isa are married in full community of property. Their total assets amount to €10,000,000.

Under civil law, each is entitled to 50%. However, they agree on a different allocation:

• Marco: 5%

• Isa: 95%

Upon Marco’s death:

• The estate amounts to 5% = €500,000.

• But Isa receives 95% in total, 45 percentage points more than the standard 50% share.

• That extra 45% = €4,500,000 is taxed as an inheritance acquisition.

The intent is to prevent partners from shifting assets tax-free via contractual arrangements.

Also applies to prenuptial agreements

The same approach applies to:

• partners with an unequally divided community of property, and

• partners with a settlement clause that results in a comparable imbalance.

What this means for planning

For estate planning and real estate structures, these measures make it essential to reassess existing arrangements, particularly where asset distributions, settlement clauses, or late-stage reallocations play a role.