Dutch Tax: Updates to Box 3

Dutch Tax: Updates to Box 3

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The Dutch government is spending a lot of time and money to support businesses and consumers, in a period of rising costs and high inflation. So, in some areas of taxation, the Dutch government is looking at raising revenues where it can. Blue Umbrella explains more.

Box 3 in the Netherlands covers taxation on people’s personal assets, such as cash in the bank, investment properties and small shareholdings, with a deduction for associated debts.

Court case 2021

After a court case in 2021, which ruled that under European law it was illegal for the Dutch tax office to impose a fictional tax on savings which bore no relation to their yield, the Dutch government is drawing up new rules. On budget day, the government announced that people who protested their tax bill from 2017 until the ruling will receive a refund of tax paid on money they did not make, whereas others will not.

At the moment, the Dutch tax office is implementing the new rules and will send people provisional filings. They will make a difference between dividends and interest, but they are still working on a new rule.

Tax changes

For 2021, tax will be charged on 0,01 percent of money in the bank, 5,59 percent on other assets and 2,46 percent of debts (which can be deducted from the assets). For 2022, the tax on assets will be based on an assumed increase of 5,53 percent, and in 2023 it will be 6,17 percent.

The Supreme Court has ruled that tax on savings must reflect reality – which has been negative interest rates for bank-held savings of more than 100.000 euros until now. Meanwhile, the level of tax on assets (currently 31 percent) will rise by 1 percent a year until it hits 34 percent in 2025 – with a personal tax-free threshold of around 57.000 euros per person that year.

The difference between the tax rates for savings in the bank and other assets may have a downside. The House of Representatives fears that the different rates may lead to tax evasion, since investments may be cashed out and stored in savings accounts until January 1. This leads to a lower tax bill compared to the taxes an individual has to pay when keeping money in an investment account.

Measurement to lower the chances of tax evasion

Secretary of State, Marnix van Rij, has announced a measurement to lower the chances of tax evasion. An individual who liquidates investments and sells them within a period of three months prior to January 1, has to be able to explain why they have done this and provide the Dutch tax office with a proper reason.

However, not the whole parliament thinks this measurement will be the solution, since some people will find a way out by mentioning they needed the money for the purchase of a property, for example, and changed their mind afterwards.

When you have money on the side, make sure you make a profit from it - but that may be hard at the moment. It’s all about where you invest when inflation is high. Property is still high in price, but from a tax perspective, it’s a safe investment with constant revenue. For advice on your tax situation, contact Blue Umbrella.

Thumb image credit: noppawan09 /

Viviënne Wormsbecher


Viviënne Wormsbecher

Viviënne Wormsbecher is a tax adviser with Blue Umbrella. Viviënne finished her bachelors in law and is specialized in the field of international tax law. Viviënne regularly provides workshops...

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TomPuijpe2 14:35 | 17 November 2022

One thing law makers must realise is that investors are putting their capital at risk wich is for the benefit of society. Therefore it is not ethically possible to charge a simple % of the ROI (without introducing risk tax reductions).

JorgeFernandezE... 02:19 | 4 January 2023

Hi! If i am a partial nom resident with the 30% and decide not to fulfill the Box3, is there any way to recover the withholding tax that has been levied on the dividends I received during 2022??