Majority of Dutch support hiking tax on big inheritances; 12% want to scrap it

More than half of Dutch people support taxing inheritances more heavily, especially big inheritances, according to a new study by the Bureau for Economic Policy Analysis (CPB). Inheritance tax is often touted as the most hated tax in the Netherlands, but only 12 percent of Dutch want to scrap it, the researchers found.

The researchers found that people’s feelings about inheritance tax are closely linked to how they view inequality, economic opportunities, and the government's role in addressing them.

“People who view inequality as a significant problem are more likely to advocate for higher inheritance taxes,” the CPB wrote. “Conversely, people who believe that success stems primarily from one’s own effort are more often in favor of lower inheritance tax.”

The researchers also noted that these views are not set in stone. “They can shift as people become better informed.” For example, currently, the potential economic effects of higher inheritance taxes, such as people working or investing less, hardly correlate with people’s position on the topic.

Across the board, “regardless of age or wealth,” a large proportion of Dutch people support a progressive inheritance tax structure, in which larger inheritances are taxed more heavily.

Inheritance tax is often a topic of debate in Dutch politics. According to Statistics Netherlands (CBS), the total annual inherited wealth increased by approximately €10 billion between 2013 and 2022. This amount is expected to increase significantly in the coming years as the aging baby boomer generation holds a large portion of the nation’s wealth.

According to the researchers, this expected increase in estates makes it “increasingly relevant” to gain insight into how people consider inheritances and why.

Currently, most inheritances in the Netherlands are exempt from tax. For example, parent-to-child inheritances of less than €25,000 are tax-free. Tax returns are filed for the inheritances of only 35 percent of the deceased. But these inheritances comprise an estimated 75 percent of inherited wealth.