International

Perhaps you own property abroad. You may hold dual nationality or you are a Dutch citizen living abroad. Are you planning to marry in another country, or to get married here in the Netherlands and then take up residence elsewhere? Do you intend to move to another country during your marriage?

These are circumstances in which Dutch law will not necessarily apply to your estate or matrimonial property regime. The jurisdiction governing such matters is determined by private international law.

It is sometimes possible to make a choice of law in your Will, prenuptial agreement or other formal contract. By choosing an applicable law, you make sure that the law of your choice applies to your matrimonial property regime or estate and you exclude the possibility of any undesirable change in governing law further to emigration, immigration or naturalization. Unfortunately, you do not have an entirely free choice of law in all circumstances.

Private international law does not determine the country (or countries) in which an estate is taxed, for example. This is likely to depend on the physical location of the property, where the deceased was domiciled at the time of death and the country in which the heirs are resident. It is possible that three countries will levy inheritance tax on the same asset. In certain cases, it is possible to arrange matters so that there is no liability for inheritance tax in any country.

The new EU Succession Regulation came into effect on 17 August 2015.

It provides far greater clarity within the EU regarding which country’s law will govern the settlement of an estate. This is beneficial for those with property in more than one country. However, the options are limited for people who relocate within the EU and have less of a connection with their country of origin. The basic principle is that the law of the country in which you are resident at the time of your death applies to your estate. The only alternative is the law of the country of which you hold nationality.

As a result, a Dutch citizen who makes a Will in France (this being his country of domicile at the time) and then moves to Spain will probably have to amend that Will.

Please contact us for further information about making a choice of law. We shall be pleased to offer advice.