The Dutch tax law mandates all Dutch resident with investments, savings or property with a value of more than 25.000 euros (tax partners 50.000 euros) to declare these items in box 3 of their annual personal tax return.
The net assets (the fair market value of the assets after the deduction of the fair market value of the debts) are valued on the reference date of January 1 of the relating tax year. So for the 2017 income tax return, the reference date is January 1, 2017.
Foreign investments and property
The same tax rules apply to savings and investments outside the Netherlands. These are taxed against the same tax rates.
However, for foreign property there are special rules. An exemption can probably be claimed in the Dutch personal income tax return. It is advisable to check the tax implications on the basis of the tax treaty between the applicable countries.
Examples
Some examples of assets and debts (in and outside the Netherlands) that fall into box 3 are:
- Savings.
- A second home or a let property.
- Shares and other securities (if they are less than 5 percent).
- Consumer loans.
- Debts that do not belong in either Box 1 or Box 2.
Note that if you have received dividends on your investments and dividend tax is withheld, that dividend tax can be offset against the total tax bill.
Measures if foreign investments are not included in the Dutch tax return
The Dutch tax office can levy 12 years retrospectively if foreign investments are not included in the Dutch tax return.
The tax assessment will include interest on the retrospectively levied tax amount. They may also impose a fine, which could run up to 300 percent of the tax on the neglected assets.
If the tax office suspects fraud, they could even prosecute a person criminally.
Tax rates 2017
There are three tax rates in box 3:
| € 25.000 |
€ 100.000 |
0,86% |
| € 100.000 |
€ 1.000.000 |
1,38% |
| € 1.000.000 |
|
1,62% |
Taxpayers are entitled to a tax-free threshold of 25.000 euros (tax-exempt capital).
Looking for guidance on how to file your taxes in the Netherlands? Contact Broadstreet, providing specialist tax and accountancy services to expats.