New system for Box 3 asset tax in the Netherlands to take effect in 2028
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By Simone Jacobs
A new system for the Dutch wealth tax under Box 3 has been approved. The changes, which will see Box 3 taxes paid on realised returns on savings, investments and second properties rather than assumed returns, will come into effect in 2028.
The Netherlands approves new system for Box 3 asset tax
The House of Representatives (Tweede Kamer) has approved a new system for the Box 3 asset tax to be implemented from 2028. This is viewed as an intermediate step before establishing a capital gains tax.
Currently, Box 3 taxes are calculated based on the value of assets, with a fixed rate of return assumed on investments. In 2021, the Supreme Court ruled that this system did not follow EU legislation and that the system needed to be adjusted.
After years of disagreements about the new path for Box 3 taxes, a proposal has received a majority in the Tweede Kamer. 93 out of 150 MPs voted for the proposal.
Under the law, people will pay tax on realised returns, requiring the Dutch tax authorities (Belastingdienst) to accurately estimate how much residents earn on their savings and investments. This will also require people to keep detailed records.
The new system will be a hybrid model, charging an annual tax on returns on savings and investments, while also only requiring people to pay tax on the increased value of a second home, for example, or shares in startups when they sell them.
Capital gains tax system is the end goal
The new Box 3 tax system is a temporary measure, while the government works on a system that will satisfy everyone. According to NU.nl, a parliamentary majority wants a new proposal for Box 3 taxes to be ready for Budget Day 2028 at the latest.
There are concerns about the changes to the new system as the Belastingdienst will have to adapt its IT systems and thousands of workers will be needed to implement the changes, making implementation expensive. The incoming coalition government is in favour of implementing a capital gains tax from 2028.
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Editor for the Netherlands at IamExpat Media. Simone studied Genetics and Zoology at the University of Pretoria in South Africa before moving to the Netherlands, where she has been working as a writer and editor since 2022. One thing she loves more than creating content is consuming it, mainly by reading books by the dozen. Other than being a book dragon, she is also a nature lover and enjoys hiking and animal training.Read more