He Says His Children Paid for His House in Morocco: the Netherlands Demands 24,738 Euros from Him
A man receiving a Dutch allowance for elderly people had not declared a house in Tangier and farmland in Morocco. He claimed that his children had financed the properties, but the courts confirmed the withdrawal of his benefit and the repayment of 24,738 euros.
The man and his wife had been receiving the AIO since July 1, 2018, a supplementary income payment provided to elderly people with insufficient resources in the Netherlands. In June 2021, the Dutch Social Insurance Bank (Svb) questioned him about his stays and assets abroad.
He then declared that he had inherited farmland in Morocco, which he valued at 2,000 euros. In a form submitted a few months later, he also mentioned a plot in Tangier on which a house had been built.
The beneficiary claimed to have built the house himself, but maintained that his children had financed its construction as well as the purchase of the land. However, the documents he produced told a more complex story, as emerges from the decision of the Centrale Raad van Beroep, the highest Dutch court with jurisdiction over social security matters.
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An investigation conducted in Morocco subsequently established that the farmland was registered in his name. Regarding the house in Tangier, the authorities relied on a notarized deed, a building permit and several property valuations.
A 30,000-euro compensation payment also used
One of the daughters explained that her father had received 30,000 euros after a medical error had left him unable to work. During a hearing, the family acknowledged that part of this compensation had been used to purchase the Moroccan land and that the rest had been kept to finance the construction at a later date.
One child is also said to have contributed to paying for the work. However, no loan agreement or acknowledgment of debt providing for repayment had been drawn up. In the judges’ view, these financial contributions were therefore insufficient to demonstrate that the children owned the house.
An initial valuation requested by the family had assessed the property at 720,000 dirhams, or approximately 72,000 euros. A new valuation carried out as part of the Dutch investigation estimated the property comprising the house and its land at 465,000 dirhams, approximately 42,550 euros. The farmland was valued separately at nearly 2,250 euros.
The combined value of the properties therefore exceeded the asset threshold allowing eligibility for the AIO. The Svb retroactively discontinued the allowance as of July 1, 2018, and demanded the repayment of the 24,738.35 euros paid up to September 30, 2021.
The man also challenged the use of a valuation conducted in 2023 to assess his assets as of 2018. However, the court held that he had provided no valuation establishing a different value for the period concerned.
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The man finally requested a reduction of the debt on account of his age and the couple’s financial difficulties. The court found no compelling reason to grant this request. It emphasized that the debt resulted from the failure to declare the properties when applying for the allowance and that its collection would remain subject to the minimum income protected by law.
In its decision of April 21, 2026, the Centrale Raad van Beroep definitively dismissed the appeal. The man and his wife must therefore repay the 24,738.35 euros demanded by the Svb.