Document background
The Bank Gift Letter (Schenking bankverklaring) is a crucial document in the Netherlands, particularly in the context of property purchases and intergenerational wealth transfer. It's commonly used when parents or other relatives provide financial gifts to help with home purchases, which is a frequent practice in the Dutch housing market. The document serves multiple purposes: it satisfies banks' requirements for mortgage applications, provides evidence for tax authorities regarding gift tax obligations, and helps comply with anti-money laundering regulations. The letter must include specific declarations about the gift's irrevocable nature, source of funds, and confirmation that it's not a loan. This documentation is particularly important given the Dutch tax system's annual gift tax exemptions and special exemptions for home purchases.
