After years of delays, the Netherlands has finally approved a new wealth tax on savings, investments, and real estate (Box 3). But it’s not coming into effect just yet.
The Dutch Tweede Kamer (House of Representatives) voted yesterday to replace the controversial Box 3 tax with a system based on actual returns rather than fictional ones, aiming for a 2028 launch.
While politicians across the spectrum admit the new law isn’t perfect, they much prefer it to the alternative: another delay that would cost the government €2.4 billion per year.
What was wrong with the old Box 3 tax scheme?
For years, the Belastingdienst taxed people based on assumed returns from their assets, rather than what they actually earned. Dubbed “Box 3 income”, these assets include funds in savings accounts, investments (i.e. shares, crypto, bonds, and more), and real estate.
As interest rates plummeted and people earned less on their savings, this system became increasingly unfair.
Things came to a head in 2021 when the Hoge Raad (Dutch Supreme Court) ruled that the existing Box 3 system violated European human rights law by discriminating against savers.
Since then, successive governments have promised a fix — originally for 2025, then 2026, and now 2028.
What do these changes mean for you?
According to the government, the new Wet werkelijk rendement box 3 (Act on the Actual Return on Box 3) will tax real income: interest from savings accounts, dividends from shares, and rental income from property.
If you’ve got investments, you’ll pay annual tax on both income received and changes in value, even if you haven’t sold anything yet.
In addition, there’ll be a capital gains tax on the “value development” of your real estate. This can involve a tax on the profit (or loss) from your second home or property that you rent out, only if you choose to sell.
Good to know: Your primary residence won’t be subject to Box 3 taxation.
Are you selling shares in start-ups (small, new companies) or scale-ups (fast-growing, new companies)? You’ll also pay a capital gains tax on the profit or loss from your sale.
Let op: there’s another overhaul coming
If you thought the upcoming Box 3 overhaul was final, you’ll be sorely disappointed.
A majority passed motions requiring the next government to present a new Box 3 proposal by Prinsjesdag 2028, potentially before the current system even launches.
While politicians disliked taxing “paper profits” (unrealised gains on investments), they couldn’t quite agree on an alternative that wouldn’t blow a massive hole in the budget.
What do you think of the seemingly endless Box 3 saga? Share your thoughts in the comments below!
Thanks Netherlands for volunteering to demonstrate what an insipid, ill conceived, and disastrous TAX POLICY does to a country. You WILL SEE…capital flight, lower taxes (than promised) , MUCH LESS investment, tax evasion schemes that divert money from the real economy, and foreign boycotts.
Socialists always think they can BEND money rules to their will… but it always ends the same…MONEY MIGRATES TO THE BEST HOMES.
Netherlands… is NOW a hostile place for money.
Ironic… given its world leading history in mercantilism…but those were better people than the current generation.
36%!! If it only were a lower number. How about pension funds? Can we save for retirement?
Thank you for the warning, I will make sure that my funds will go to a better place where it is not taxed, except on the actual interest received.