In the Netherlands, your savings and investments are taxed in box 3. The wealth tax (or: box 3 taxation) works a different than the taxation on income from work (box 1). Do you have a lot of savings, a second house, stocks, or other investments? If you reach the tax-free capital threshold, you will have to pay tax in box 3. Since the ruling of he Dutch court, wealth tax is divided into different tax prices to make the taxation on savings fairer. According to the planning, a capital gains tax system will be introduced in 2025 or 2026.
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Box 3 tax Netherlands
The Dutch tax system contains three ‘boxes’. It is important to know that your savings and investments are taxed in box 3. Box 3 has a different taxation system than boxes 1 and 2. In boxes 1 and 2, tax is levied on the income actually received and profit respectively. The Dutch tax authorities work towards such a system for box 3 as well. However, the capital gains tax system will be finished at 2025 at soonest.
How is wealth tax calculated?
For coming years, your savings and investments are calculated based on the flat-rate savings option. The amount is still based on a fictitious return, but based on the actual composition of assets, broken down into three categories:
- Savings will be taxed on the average interest rate on savings in the year of question
- Debts are linked to the market mortgage rate
- Other assets/investments are based on the long-term average return for investments
The flat-rate saving option is just a temporary solution until the Duch tax authorities have set up the capital gains tax system. In the table below, we show you the ficitious return per category.
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Savings | 0.01% | 0.01% | t.b.a. |
| Investments and other assets | 5.69% | 5.53% | t.b.a. |
| Debts | 2.46% | 2.46% | t.b.a. |
Tax-free capital
As we already mentioned, you only have to pay tax on your savings and investements when you exceed the tax-free capital. In 2023, this exemption is set to €57,000. Do you have a tax partner? Then this tax-free allowance will double to €114,000.
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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