In the Netherlands, investing is becoming an increasingly important part of building wealth. This is due to rising prices, low interest rates and a growing interest in financial independence. People choose more often to grow their money through investments. For the record, investing means investing money in the stock market, such as stocks, bonds or mutual funds, with the goal of achieving a higher return than keeping money in your savings account.
For people from abroad who want to invest in the Netherlands, the investment system can be quite complicated at first. Specific rules apply that impact returns, such as tax structures and tax protections. A good knowledge about these rules helps you to make wise and safe decisions in the world of the Dutch financial market.
Core:
In the Netherlands, investments are supervised by the Autoriteit Financiële Markten (AFM) and De Nederlandse Bank (DNB). These institutions monitor the fairness and transparency of banks, asset managers and investment platforms. This prevents costumers from taking excessive risks or being misled by incorrect information.
An important element of Dutch investing is the client’s risks profile. Financial institutions are required to make a profile of the person that wants to start investing. This file outlines the risks a client is willing to take with their assets. Based on these risks, the investment options are then determined. This is done so the client understands the potential risks involved when they start investing.
Besides that, taxes also have a significant impact on investing. In the Netherlands, assets are taxed in box 3 of the income tax system. This means your assets are taxed. This can lead to unexpected outcomes, especially years with bad markets. The government estimates your average profit from your investments and then pays tax on that amount. This system differs from other countries. That is why international clients should be well-informed about investments in the Netherlands before they start investing. The government wants in 2026, to introduce a system based on actual returns. Creating a fairer environment for international investors.
The Netherlands also offers investment protection. This provides retail investors with an extra layer of protection certainty when investing their money. If a company goes bankrupt, any financial losses are compensated, meaning the client always get a part of their money back.
Sustainability is also playing an important role in the world. This development is also reflected in the investment world. A growing number of providers offer sustainable investments that comply with the ESG regulations. These investments are focused on environmentally friendly companies. The Dutch government encourages this form of investments. They support this by clarifying the information requirements.
For you as international investors who want to get started, it is important to understand that investing always involves risks. The value can rise fast, but drop even faster. And unfortunately, past performance is no guarantee of future results. Therefore, we at Novare Financial Solutions recommend investing money that is not needed in the short term and to spread over different types of investments.
Conclusion:
Investing in the Netherlands offers an opportunity to grow your wealth, but is also requires an understanding of the rules, taxes and risks. Through the supervision of the AFM and DNB, the Dutch investment market is highly transparent and reliable. Establishing a risk profile and understanding tax regulations are essential for responsible investing. For international clients, this means that the Dutch financial market offers a sound and secure environment to contribute to long-term financial security.
Writer: Colin Questroo