In the Netherlands, your savings and investments are taxed in box 3. The wealth tax (or: box 3 taxation) works differently than the taxation on income from work (box 1). As soon as your assets exceed the tax-free capital threshold, you have to pay wealth tax in box 3. There has been a lot to do with the wealth tax. In 2021, a new calculation method based on the savings variant is introduced. According to the planning, a capital gains tax system will be introduced in 2025 or 2026.
Wealth tax 2023-2024
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Box 3 tax Netherlands
The Dutch tax system has three boxes for the income tax return. It is important to know that your capital is taxed in box 3. Here, no tax is levied on actual returns (yet). Until 2021, your assets were completely lumped together, on which a fictitious return was calculated. For many people, this return is higher than they achieved on their assets. The Dutch tax authorities work towards a capital gains system for box 3 as well. However, the capital gains tax system will be finished in 2026 at the soonest. Until then, temporary rules apply.
How does wealth tax work?
Until the plans on capital gains tax are finalized, the flat-rate saving option will be used as bridging legislation. The amount is still based on a fictitious return, but based on the actual composition of assets, broken down into three categories:
- savings
- other investments
- debts
The Dutch tax authorities use a different fictitious return for each asset component. You pay 32% wealth tax on the total notional return in 2023. From 2024 this will be 36%. In the table below you can see the fictitious returns that the Tax Authorities calculate. The percentages for investments and other assets are already fixed. The percentages for bank balances and debts are still provisional. The Tax Authorities will determine these percentages at the beginning of 2025.
| Asset component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Savings | 0.01% | 0.01% | 1,03% |
| Investments/other assets | 5.53% | 6,17 % | 6,04% |
| Debts | 2.46% | 2.57% | 2,47% |
Tax-free allowance
Fortunately, you do not have to pay tax on all your assets, as there is an exemption. For the year 2023, the tax-free allowance is €57,000 (€114,000 applies to tax partners). The tax-free allowance will remain the same in 2024.
Debt threshold
Debts reduce your assets, but you must pay attention to the debt threshold. For 2022, this debt threshold is €3,200 per person. In 2023, this threshold will be increased to €3,400.
How is wealth tax calculated?
The new calculation method will be used in your 2023 income tax return. In general, the new method is more beneficial for people with a lot of savings.
To give you an idea of the new calculation method based on We will give you an example of the savings variant.
We assume that you do not have a tax partner. You have a total of €40,000 in savings, €80,000 in investments and a debt of €8,000 (after the debt threshold, €4,600 remains for the calculation in 2023). This makes your total assets € 115,400.
Step 1: calculate the total fictitious return on assets
- Return on savings (€ 40.000 x 0,36%) = € 144
- Return on investment (€ 80.000 x 6,17%) = € 4.936
- Return on debt (€ 4.600 x 2,57%) = € -119
- Total return = € 4.961
- The return percentage on the total assets is (4.961 / 115.400 x 100) 4,29%.
Step 2: determine the basis for savings and investments
The basis from savings and investments is €58,400 (€115,400 minus the tax-free allowance of €57,000).
Step 3: determine the notional return and the wealth tax to be paid
The fictitious return is € 2,505 (4.29% on € 58,400). You will pay €801 in tax on this in 2023 (32%).
Until 2021: fictitious return
Until 2021, box 3 calculates a notional return on your capital. This notional return is taxed against 31% in 2021. The tax authorities assume that the more capital you have, the more returns are achieved. There are three categories:
- Assets up to € 50,000. In the first category, you get a return of 0.03% on 67% of your assets and a return of 5.69% on the remaining 33%.
- Assets from € 50,000 to € 950,000. On the second write, you get a return of 0.03% on 21% of your assets and a return of 5.69% on the remaining 79%.
- Assets from € 950,000. On the third write, you get a return of 5.69% over 100% of your assets.
You pay 31% tax on the notional return in 2021.
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Call us on +31 20 – 2170120
Do you have questions about the box 3 taxation? Or other tax-related questions? We are happy to help. You can contact us using the details mentioned below.
TaxSavers
Amsterdamseweg 71A
1182GP Amstelveen
E. info@taxsavers.nl
T. +31 20 – 2170120
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