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I am sending money back to my family. Will this incur tax?

Question
 
I have been staying here for 4 years, where I am under dutch tax ruling for my work. My parents gave me a few thousand dollars when I first started studying here. Now they want me to send the money back. I was wondering if sending some money ( eg. a few thousand dollars) back to my parents in another country will incur tax? If there is, how much is that? Is there a money limit to how much i can send so that I do not get taxed?
 
Answer
 
Sending money abroad, back to your parents, will not incur tax (in the Netherlands). You are just paying back the loan you received from your parents. It is not a gift to your parents.
 
 
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Comments (16)
Comment by sharon on Thu, Feb 2nd, 2012 at 1:47 PM
hi arjan, thanks for your reply. so when i return the money, and if belasting asks, i show them my first bank records of when my parents sent me those money ? would that be enough?also, under what cases of money transfer will we get taxed then which we need to be aware of? i saw somewhere that if parents give money to children for more than 2012 euros, they will get taxed for gifts (schenk belasting)? is this true and are there other cases we expats might be aware of?
Comment by arjan enneman on Mon, Mar 5th, 2012 at 8:25 AM
yes, if you show them the bank records, that should be enough to convince them that you are paying back the money which you received earlier. i don‘t expect that questions will be asked by the tax authorities though. parents can give an amount of ? 5,030 to a child tax free every year. there is nothing else to be aware of in my opinion.
Comment by James on Sat, Feb 28th, 2015 at 11:06 PM
What are the taxes or other ramifications on sending a money gift to anyone in the Netherlands; approximately $5000
Comment by Arjan Enneman on Sat, Feb 28th, 2015 at 11:09 PM
If the person who sends you the money is not living in the Netherlands the gift is tax free (exemptions possible in case this person has the Dutch nationality or was living in the Netherlands recently). There is an article about this topic in the Knowledge Base.
Comment by Sushil on Tue, Mar 17th, 2015 at 12:20 PM
If I want to close my indian account and bring everything to NL account, will there be any tax on that?
Comment by Arjan Enneman on Wed, Apr 8th, 2015 at 4:24 PM
Transfering money from your own Indian account to your Dutch account won‘t lead to additional tax.
Comment by Erica Lagahit on Thu, Aug 4th, 2016 at 9:51 AM
I have been given a donation and trying to transfer it from the bank there to australia where I live does that inccur a tax? If so how is it paid? Why can I not use the money i have in the ba k account there to pay for it? Thanks Erica
Comment by Arjan Enneman on Mon, Aug 29th, 2016 at 2:02 PM
There should not be a tax in the Netherlands for transfering money to another bank account.
Comment by Yvette on Thu, Nov 10th, 2016 at 3:31 PM
I am French and my parents are planning to give me a large donation in France (110 000euros) to buy a house in the Netherlands. From what I understood, when I transfer the money to the Netherlands I will not need to pay a tax? Once in the Netherlands, and I have the money on my bank account, will I need to pay tax on it? Even if I have it just for a few days before paying for the house?
Comment by John Carnell on Sun, Nov 20th, 2016 at 9:37 PM
Should a person living outside the country (not dutch) ever send you a gift of over 10K - is there anything to be concerned with?
Comment by Arjan Enneman on Tue, Jan 3rd, 2017 at 1:07 AM
I gift which you receive from a person living outside the Netherlands is not taxed (no matter how high the gift was) unless this person is Dutch and left the Netherlands less than 10 years ago or if this person is non Dutch and has lived in the Netherlands less than 1 year ago.
Comment by Arjan Enneman on Tue, Jan 3rd, 2017 at 12:54 PM
@Yvette: the actual transfer of the money doesn‘t lead to taxation in the Netherlands. If the amount however is present on your bank account on 1 January then it can be included in the tax calculation in Box 3 (savings & investments).
Comment by Suzette on Thu, Sep 7th, 2017 at 6:40 PM
I started a company in SouthAfrica which funded the development of an app. However due to restrictions from Google I needed to open a business and bank account in a "google merchant approved" country. I am opening an account in Nederland. How will I be taxed if I send most of the initial revenue made from the app back to the South African company to restore the capital spent on product creation?
Comment by Rudy on Sat, Sep 9th, 2017 at 4:41 PM
If I have started sending a monthly or quarterly amount back home to my family as support, what kind of tax situation can I expect?
Comment by Arjan Enneman on Tue, Sep 19th, 2017 at 3:10 PM
@Suzette: you can minimize taxable income in the Netherlands if your South African business will invoice your Dutch business for the capital spent on product creation.
Comment by Arjan Enneman on Tue, Sep 19th, 2017 at 3:20 PM
@Rudy: the amounts you send to your family are not deductible in your Dutch tax return. Costs of life support are not deductible. On the other hand, a gift to your family can be taxed with gift duties. The tax depends on to whom exactly you give the money and how much you give. The Dutch tax authorities will send you a tax form when they are aware of the gift or you file a tax form yourself.
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