INHERITANCE TAX

INHERITANCE TAX
Inheritance (Successierecht) and gift (Schenkingsrecht) taxes are payable by each heir on his respective inheritance if the donor is a resident of Netherlands Antilles. The tax base is the net value of each beneficiary's share in the estate after deduction of related debts, legacies, and funeral costs.

The following are exempted from inheritance and gift taxes:

• Real estate on which property transfer tax was paid in the Netherlands or in the Netherlands Antilles
• Gifts of ANG500 (US$279) to relatives in the direct descendent line and gifts of ANG100 (US$56) for all other beneficiaries

Inheritance and gift taxes are imposed at progressive rates depending on the degree of relationship between the donor and the heir:

The inheritance tax may be reduced by the following allowances:

• ANG12,000 (US$6,708) for the surviving spouse
• ANGG4,000 (US$2,236) for relatives in the direct descendent line
• ANG400 (US$224) for all other beneficiaries

The gift tax may be reduced by the following allowances:

• ANG1,000 (US$559) for relatives in the direct descendent line
• ANG400 (US$224) for all other beneficiaries but this amount may only be used once and does not apply to subsequent gifts if the full allowance has already been used.

SPECIAL PROPERTY TRANSFER TAX

Heirs inheriting Antillean property from a nonresident are subject to a special property transfer tax. This tax is levied at a flat rate of 8% on the property value.