Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/29/2012

The Netherlands - Linking endowment insurance to principal residence 

November 29: Taxpayers have until 1 April 2013 to decide whether to link endowment insurance to their principal residence.

Endowment insurance policies were taken out with the intention of using the amount paid out at maturity to repay the mortgage, mostly in combination with an interest-only mortgage. However, the Dutch government decided that beginning 1 January 2013, mortgage-linked endowment insurance (kapitaalverzekering eigen woning—KEW) can only be taken out in exceptional situations.


Taxpayers have been given until 1 April 2013 to decide whether they want to make changes to an existing policy.


Read a November 2012 report prepared by the KPMG member firm in the Netherlands: Should endowment insurance be linked to the principal residence? That is possible until April 1, 2013




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