How does rich Dutch people protect their wealth?

[mikestachurski]

Does anyone know how rich and famous people from NL avoid paying wealth tax in NL? I would be surprised if they willingly pay wealth tax on their millions sometimes billions of euros passed from generation to generation or earned from being football player, celebrity etc. Any ideas?

 

[JohnnyDoe]

Foundations, trusts, proper tax planning… each situation is different!

 

[wellington]

In Europe? - Trusts/Foundations (Friend inherited money from his family DeBeers/Private Bank) spends about 1.5m Euro a year in Thailand tax free, and pays no tax in Europe.

Foundations, trusts, proper tax planning… each situation is different!

 

[Mr Gus]

For the Netherlands it is a very easy answer they have all their wealth in companies which can be transfered almost tax free to their children.

Buying an estate with a special status in combination with a foundation also allows for additional tax planning since those estates are tax exempt and so are gifts.

Internation tax planning by using shell companies are outdated and impossible for Dutch residents, the tax authorities have become too advanced.

With the 30% ruling you can opt to become non resident for the wealth tax

 

[mikestachurski]

In Europe? - Trusts/Foundations (Friend inherited money from his family DeBeers/Private Bank) spends about 1.5m Euro a year in Thailand tax free, and pays no tax in Europe.

Trust and foundations are not really working as 'protection' mechanism in Netherlands. As far as I know Dutch Tax authorities do not recognise trusts as a legal entity. Basically if you have trust you are taxed as normal if these assets belonged to you.

For the Netherlands it is a very easy answer they have all their wealth in companies which can be transfered almost tax free to their children.

Buying an estate with a special status in combination with a foundation also allows for additional tax planning since those estates are tax exempt and so are gifts.

Internation tax planning by using shell companies are outdated and impossible for Dutch residents, the tax authorities have become too advanced.

With the 30% ruling you can opt to become non resident for the wealth tax

Keep their wealth in companies? You mean as a cash on their balance sheet?

If they kept this wealth it as any other asset (appreciating asset) on their company balance sheet they would have to pay every year for increase of its value right?

Buying a real estate with a special status in combination with a foundation - that is the first time I heard about it. Are you able to elaborate or send me to some sources where I could read more about it?

So you can avoid paying gift tax if you are foundation? Or I miss-read you?

Yes I heard / read about shell companies not working in NL anymore.

 

[Mr Gus]

Trust and foundations are not really working as 'protection' mechanism in Netherlands. As far as I know Dutch Tax authorities do not recognise trusts as a legal entity. Basically if you have trust you are taxed as normal if these assets belonged to you.




Keep their wealth in companies? You mean as a cash on their balance sheet?

If they kept this wealth it as any other asset (appreciating asset) on their company balance sheet they would have to pay every year for increase of its value right?

Buying a real estate with a special status in combination with a foundation - that is the first time I heard about it. Are you able to elaborate or send me to some sources where I could read more about it?

So you can avoid paying gift tax if you are foundation? Or I miss-read you?

Yes I heard / read about shell companies not working in NL anymore.

This is a report from the tax authorities themself, called “remarkable tax structures”.

Basically a list some leftists politicians made up hoping the tax authorities will do something about. It’s in Dutch but google translate can help you out if you don’t speak dutch.

 

[mikestachurski]

This is a report from the tax authorities themself, called “remarkable tax structures”.

Basically a list some leftists politicians made up hoping the tax authorities will do something about. It’s in Dutch but google translate can help you out if you don’t speak dutch.

Thank you I will digest it and might come back with some more questions. Thanks for sharing!

 

[Marzio]

Does anyone know how rich and famous people from NL avoid paying wealth tax in NL?

They move to Curacao

 

[void]

They move to Curacao

this move has many advantages (especially for Dutch) but doesn't seem to be too favourable in terms of taxation burden, does it?
anyone here can elaborate on Curacao?

 

[Mr Gus]

this move has many advantages (especially for Dutch) but doesn't seem to be too favourable in terms of taxation burden, does it?
anyone here can elaborate on Curacao?

There is nothing special about Curacao anymore, it used to be attractive in certain situations till 7 years ago.

They had to change a lot of their atractive tax regimes to be not blacklisted or greylisted.

I believe they still have SPF (As alternative for a Panamese foundation) and still offer iGaming licenses but that’s about it.

Also it is extremely unsafe

 

[Marzio]

There is nothing special about Curacao anymore

Isn’t the move from worldwide taxation to territorial taxation interesting enough for NL people?

https://www.taxathand.com/article/1...legislation-introduces-territorial-tax-system

 

[Mr Gus]

Isn’t the move from worldwide taxation to territorial taxation interesting enough for NL people?

https://www.taxathand.com/article/1...legislation-introduces-territorial-tax-system

Yes it can be interesting but not more interesting then for a German person.

Also this territorial taxation is not the same as in Hong Kong for example.

It is only interesting if you have a lot of expenses and you will never pay less then 5%, not sure how the exact calculations are but in comparison to other countries it’s garbage.

 

[Marzio]

I admit i didn’t go deeper, i only read about territorial taxation and thought could be useful for the right person.

 

[void]

Isn’t the move from worldwide taxation to territorial taxation interesting enough for NL people?

https://www.taxathand.com/article/1...legislation-introduces-territorial-tax-system

doesn't this apply only to corporate taxation? how about advantages for individuals, does it make any sense to relocate to Curacao with certain kind of personal income structure?

 

[Alonzo]

Does anyone know how rich and famous people from NL avoid paying wealth tax in NL? I would be surprised if they willingly pay wealth tax on their millions sometimes billions of euros passed from generation to generation or earned from being football player, celebrity etc. Any ideas?

Not worth it to go deep trying to avoid that wealth tax on annual investment returns. These people have no choice but just pay the wealth tax. Whether they like it or not, it is what it is if they want to live in NL comfortably without complexity.

There's no capital gains tax btw

 

[Mr Gus]

Not worth it to go deep trying to avoid that wealth tax on annual investment returns. These people have no choice but just pay the wealth tax. Whether they like it or not, it is what it is if they want to live in NL comfortably without complexity.

There's no capital gains tax btw

There will be starting from 2026.

From 2026 the current wealth tax will be replaced by a capital gains tax + unrealized capital gains tax.

 

[TheCryptoAnt]

Not worth it to go deep trying to avoid that wealth tax on annual investment returns. These people have no choice but just pay the wealth tax. Whether they like it or not, it is what it is if they want to live in NL comfortably without complexity.

There's no capital gains tax btw

unless Capital gains is all you do, then they turn into income tax

 

[Alonzo]

There will be starting from 2026.

From 2026 the current wealth tax will be replaced by a capital gains tax + unrealized capital gains tax.

Just found out.

Holy cow. A lot of dutch folks will flee the country. 34% on unrealised gains???? Insanity

 

[bamboozlethemall]

Keep your wealth in Crypto simple.

 

[jafo]

With the 30% ruling you can opt to become non resident for the wealth tax

Can you explain this?