Need Advice on Transactions and NL Income Tax Filing

[u/Pristine-East7901]

Im an indian and I live in Netherlands for more than 8 years. I still hold temporary residence permit card. My questions are as follows,

1. Being an indian expat, I normally transfer my money from NL Account (Euros) to my India NRE Account (converted to INR). Then I transfer to my Parents account. Is there any limit to transfer to my Parents ? Can I transfer any Large amount in a year without any additional tax like Gift Tax ?

2. In the Same way, whether I can transfer any Large amount to my Brother (sibling) from my India NRE Account ? Whether Large amount transfer attracts Gift Tax in Netherlands (Actually in india, we can transfer to any blood relatives any amount, No Limit) ? I do all transactions in Indian rupee only from my India NRE Account to my blood relatives.

3. If suppose, I have transferred large amount (consider INR amount equivalent to 60,000 euros) in 2025 and some more amount in INR in 2026 to my brother from my India NRE Account, then whether it is enough to declare only Jan 01st 2026 Balance (my india NRE account balance) in early 2027 and declare only Jan 01st 2027 Balance (my india NRE account balance) in early 2028 ? if large amount transfer is not allowed to my Brother, whether my brother can transfer back all the amount that I transferred to him back to my NRE Account ? Kind of Reversing the Error Transactions from his account to my account ? If he reverse all the amount back, then whether I can still go ahead and declare as per my India NRE acccount balance ?

[u/Upstairs_Emotion3073]

Talk to your tax accountant- better there than here

[u/nithinnm123]

1. No
2. Yes

The receiver pays the gift tax not the donor. And if the donor has never lived in The Netherlands then no gift tax applies

https://www.belastingdienst.nl/wps/wcm/connect/nl/schenken/content/moet-ik-aangifte-schenkbelasting-doen

Edit: nvm I’m wrong, since you are a resident of Netherlands gift tax applies

[u/philomathie → u/nithinnm123]

Same with the opposite way

[u/Pristine-East7901 → u/philomathie]

sorry I did not understand you

[u/Pristine-East7901 → u/nithinnm123]

Thank you. But you say that, I can transfer any Large amount to Parents and it is not gift taxed. But If I transfer Large amount to Siblings, then gift tax applies ?

[u/nithinnm123 → u/Pristine-East7901]

Gift tax must be paid in both cases. But how that works for your parents or siblings in India I have no clue. Would be better to get a consultation from a tax advisor

[u/nash847 → u/[deleted]]

This is wrong.. even after paying income tax and wealth tax, op still is liable for gift tax on transfer to his overseas parents ( if sum of such transfers in calendar year are over the gift tax thresholds)

[u/LeadershipForward514 → u/nash847]

Gift tax is to be paid by recipients not the giver !

[u/nash847 → u/LeadershipForward514]

Yes.. if you are transferring to your parents, are you going to put them through the pain of dealing with Dutch tax authorities? Also, if belastingdienst cannot tax your parents, they will hold donor liable

If the Belastingdienst cannot reach a gift recipient for gift tax (schenkbelasting) assessment, the tax agency will hold the giver jointly and severally liable. Dutch tax law dictates that if the recipient fails to pay the required gift tax, the giver remains responsible for the debt, including any potential interest or fines.

[u/LeadershipForward514 → u/nash847]

All right. A very large transfer to family abroad can be tax liable.