Netherlands: Elimination of real estate fiscal investment institution

Changes to regimes for exempt investment institutions and mutual funds

Changes to regimes for exempt investment institutions and mutual funds

The government on 9 December 2022 responded to a report on the effectiveness and efficiency of the regimes for fiscal investment institutions (fiscal beleggingsinstellingen—FBIs) and exempt investment institutions (vrijgestelde beleggingsinstellingen—VBIs).

The following measures were announced:

  • FBIs will no longer be allowed to directly invest in property (as of 1 January 2025).
  • Only investment institutions that have a license from and fall under the supervision of the Netherlands Authority for the Financial Markets and the Dutch Central Bank will qualify as a VBI (as of 1 January 2024). In other words: the VBI regime will be eliminated for family held VBIs.
  • The conditions governing (open) mutual funds will be amended (as of 1 January 2024).

The new rules primarily affect institutional investors (FBI and mutual fund), (listed) real estate funds (FBI) and high-net-worth families (VBI and mutual fund). Existing structures may have to be altered.

Read a December 2022 report prepared by the KPMG member firm in the Netherlands that addresses the proposed measures in more detail


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