The Decree provides further clarification when an entity qualifies as an FGR, and when it is treated as a transparent or non-transparent fund for Dutch tax purposes.

Key change to the 2025 FGR definition is that the former redemption/consent requirement has been abolished as sole distinctive element. Instead, an entity now only classifies as FGR if it meets a number of conditions. This includes qualifying as an investment fund or UCITS‑type fund within the meaning of the Dutch Financial Supervision Act (Wft).

The Decree - which updates a previous 2024 Decree - explains that an FGR must have tradable participation rights; where units can only be sold back to the fund itself, the fund is treated as an “inkoopfonds” and remains fiscally transparent.

The Decree further elaborates on:

• the definition of a “fund” and the relevance of AFM registration or licence;
• when activities are regarded as “investing” rather than “running a business”, including specific guidance on investing through limited partnerships (cv’s) and in loan portfolios;
• the treatment of funds investing only within a family group, which typically fall outside the Dutch regulatory regime; and
• disregarding certain transfers.

The 2025 Decree replaces the 2024 Decree. 

Note that an internet consultation is still scheduled for 2027, exploring the opportunity to reduce the unexpected overkill of the Fund Priority Rule.