Since Jan. 1, 2024, significant changes have been made to the patrimony tax, the annual tax on the assets of not-for-profit associations, international not-for-profit associations (AISIs) and private foundations. The new rules impact both the exemption thresholds and the rates and entail stricter control measures.
What does this mean concretely for your organization? We list the most important changes.
1. Increased exemption threshold
Organizations with taxable assets up to €50.000 are now exempt from the patrimony tax. This also means that they no declaration requirement have more.
2. New progressive rates
The patrimony tax will be calculated according to a progressive rate starting in 2024:
- €0 - €50.000 → 0%
- €50.000,01 - €250.000 → 0.15%
- €250.000,01 - €500.000 → 0.30%
- As of €500,000 → 0.45%
3. Full exemption for specific sectors
Certain organizations remain completely exempt from the patrimony tax, including:
- Compensation greenhouses and mutual greenhouses for child benefits.
- NPOs legally responsible for managing and paying pensions.
- Educational institutions and non-profit organizations that manage property for the benefit of education.
- Recognized land management nature associations who acquire and manage natural areas.
- Institutions for occupational retirement provision which are subject to corporate income tax.
4. Partial exemption for healthcare, sports, education and culture
Organizations active in the healthcare, sports, education and culture sectors can 62.3% exemption get, provided that at least 50% of their sales originates from VAT-exempt activities (with some exceptions up to 75%).
5. Expansion into foreign real estate
As of 2024, it also includes real estate abroad under the patrimony tax. If a similar tax is already paid in that country, it can be offset.
6. Declaration and payment: deadlines and obligations
- Submission deadline: March 31, 2025 (assessment year 2025).
- Declaration procedure: digital via MyMinfin.
7. What does this mean for your organization?
Check your ability
Find out if your organization meets the exemption threshold of €50.000 exceeds. No specific valuation methods apply, but total assets are determined based on market value or book value, depending on the context.
Note possible deductions
Certain elements may be deducted, such as:
- Income from membership and registration fees
- Cash and working capital consumed within the year
- Certain securities and mortgage loans
See if you qualify for exemption
Active in healthcare, sports, education or culture? Check if you meet the requirements for the partial exemption from 62.3%.
File your return on time
Make sure your tax return is accurate and by March 31 is filed to avoid penalties.
8. Stricter controls on returns.
The tax authorities are conducting additional controls out on the valuation of patrimony. Are the assets misdeclared or undervalued? Then the tax authorities can make their own valuation and impose a fine of up to 100% of the tax due.
Need help?
Our Pro Experts help you calculate and file your patrimony tax correctly. That way you avoid surprises and stay completely in line.
