On 5 October 2026, the cabinet stated it will not expand the agricultural exemption (landbouwvrijstelling) for inheritance and gift tax to cover situations where dairy farmers temporarily make land available for crop rotation (wisselteelt) by arable farmers. The exemption currently applies to land used for the farmer’s own agricultural business. The government argues the existing policy decision (beleidsbesluit) provides sufficient flexibility within the law and jurisprudence, and that extending it would create undesirable loopholes for tax planning.
Key Takeaways
- Exemption Scope Unchanged: Land must be used for the taxpayer’s own qualifying agricultural activities; temporary leasing for crop rotation does not qualify.
- Succession Planning Impact: Dairy farmers considering intergenerational transfer must ensure land use meets strict “own use” criteria to retain the exemption.
- Policy Stability: The decision signals resistance to broadening agricultural tax preferences amid EU state aid scrutiny.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement