Does the Dutch royal family pay tax? You might rightly be wondering about the financial situation of the royal family in the Netherlands.

Coming from one of the many (but not ubiquitous) republics in Europe, the Netherlands seems – as usual – to do things in its own way: while all the other nations were run by monarchies the Netherlands was a republic, and in modern times the Dutchies prefer (70% of them) to be a kingdom.

But how does this work in terms of taxes? Does the Royal family sit behind the computer every year around April to fill in their income tax return?

Do the royals pay taxes in the Netherlands? Sit down in the throne to fill in that tax return?

Well this was a predictable answer right?

Under the consitution, royal house members receiving a stipend are exempt from income tax over that stipend. They are also exempt from all personal taxes over assets and possessions that they use or need in the execution of their functions for the kingdom. The monarch and the heir-apparent are also exempt from inheritance tax on inheritances received from members of the royal house.

No taxes on:

Ad
  • income
  • legacies
  • donations
  • a part of the capital money (used to carry out their functions for the kingdom)
  • cars and motorcycles with an AA license plate

Taxes on:

  • private capital
  • VAT on groceries
  • dogs

Should the royals pay taxes in the Netherlands? Is the Dutch royal family expensive?

Very! In fact, being more expensive than the British royal family and costing four times as much as the Spanish one, they are the most expensive royal family in Europe, according to a research by the University of Ghent (Belgians right? Always meddling!).

According to Business Insider, in 2017 the royal family cost the government budget (and Dutch taxpayers) 41.4 million euros. Along with expenses compensations (used to pay their employees), the King, the Queen and the Princess get “consitutional benefit”, that increases annually at the same rate as the salaries of gov’t officials.

Source: memecrunch

What’s in it for the country? Well, as you can imagine a king can open doors that others cannot, and more than half of the surveyed companies in a study by Regioplan believed that they got economic benefits from taking part in trade missions. Another study by Tillburg University concluded that the monarchy stimulates the Dutch economy to grow about 1 percent per year, and the Royals add 4 to 5 billion euros to the Dutch economy per year.

Why don’t the royals pay taxes in the Netherlands? Was there ever a secret deal between the Royals and the government?

Over the years there have been many rumours about a secret agreement made between the royal family and the De Jong cabinet in the 70s. According to the report, since the establishment of a new financial system managing the Royals’ expenses in the early 70s, a deal would have been made to guarantee that the “losses” of replacing the old system with the new one would be compensated with some extra benefits, and this agreement would still be ongoing.

The report stirred quite a heated debate in the government a couple of years ago, and a committee was put in place to clarify the matter. However, the Van Baalen commission, after almost a year, reached the conclusion that no such a deal was ever made.

Is it the end of it?

Of course not. This has sparkled again a discussion about whether the Royals should pay taxes like everyone else – and in general about the whole monarchy concept.

What is the opinion of Prime Minister Rutte, you ask? Along the lines of “everything should stay as it is, cause changing the rules would be too complicated“.

HAHAHAHA paying taxes (Source: WikipediaCommons)

Do you think the royals should pay taxes? Let us know in the comments!

Editor’s Note: this article was originally published on 4 December 2017, but was updated for your reading pleasure on 27 November 2019. 

Feature image: Minsiter-president/Flickr. 

3 COMMENTS

  1. two premises to start with (you may or may not agree with these):

    1 Being a monarchy is all about how the world perceives us. Having a king (or queen) is often associated with the stereotype portrayed in fairy tales and stories. In a way it’s just global marketing.

    2 Since the king got forced into this position (by being born in that family) he had no choice in his life what so ever. He has to maintain the image.

    You could say that since the Netherlands is benefiting from having a king and he is forced to act “kingy” and do “king things”. It’s therefore justified not to pay tax. I wouldn’t want to be king. Being known and watched by the whole world, forced to live an image, not for me. I am not particularly pro royal family, but to be against them is another thing.

    In the end taxing him won’t make much of a difference since it’s all state money anyway. To be a monarchy is politically and economically beneficial for The Netherlands. So the question whether he should or should not be taxed is probably irrelevant and is only kept alive for political reasons only. Don’t get me wrong, I am not saying you have political means with asking this question, but I do think that whenever this issue becomes a hot topic on big media outlets again, it’s just to create a hype. People start arguing about this and no one really asks relevant questions. This will give politicians more freedom to act out their agendas instead of the voter’s agenda.

    Relevant questions are those which help us and those around us to develop more, faster and better. So for example, “How can we promote the bicycling culture abroad?” This will not only make them do healthy exercise on a daily basis, it’ll also create a new market for us to export bicycles to. This will make our and their economy grow. Of course this is just one of many examples and happens to be an economical one. The reason we are a monarchy is political and economical. If it was more profitable to not be a monarch we wouldn’t be one.

    one last thing, by no means am I implying being a monarch is better than not being one. I mean the best about Europe (and the world) is the diversity in peoples and how they manage themselves.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.