The Business Succession Scheme: your greatest fiscal opportunity — or pitfall

The Dutch Business Succession Scheme (BOR) is one of the most valuable tax facilities available to entrepreneurs. And one of the most misunderstood.

In short: when transferring your business to a successor, a large portion of the tax liability can be deferred or even waived. Applied correctly, you pay no gift or inheritance tax on the first €1.5 million of business assets. Above that, only 17%.

That sounds attractive. And it is — if you apply it correctly.

Where it goes wrong

The BOR only applies to business assets — not investment assets held in the BV. A common mistake is that entrepreneurs assume everything inside the BV qualifies automatically. It does not.

Real estate rented to third parties? Usually not business assets. Surplus liquidity above operational requirements? Does not qualify. A holding structure that is not properly set up? Can block the BOR entirely.

What you can do now

Start early. The successor must have been employed for at least three years. And the transferor must have run the business for at least five years. Planning ahead is essential.

Have your structure reviewed — not by someone who tells you what you want to hear, but by someone who knows how the Tax Authority looks at it.

I have seen from the inside how the Tax Authority assesses BOR structures. That knowledge I now deploy for your benefit.