The Dutch government is preparing a major reform of the way wealth is taxed. These changes focus on Box 3, the part of the tax system that covers savings and investments. For many international residents, the Dutch tax system already feels unfamiliar and as a sustainable financial advisor I see how easily people overlook the impact of Box 3 on long-term planning. This blog explains the basics, the planned reform and what it may mean for your financial situation.
What is Box 3?
In the Netherlands, your income is divided into three groups called ‘’boxes’’.
Box 3 applies to your wealth, which includes:
- Savings
- Shares, bonds, funds and other investments
- Cryptocurrencies
- Second homes or other real estate you don’t live in yourself.
Your main home, if you own it, is taxed in Box 1, not Box 3.
Under the current system, the Dutch tax authority uses a ‘’deemed return’’, which means they assume your assets earn a certain amount, even if they don’t. You pay tax on this assumed return, not on what you actually earned. This can feel unfair, especially in years when your investments perform poorly. Because of this, the Dutch government wants to introduce a new, more realistic model.
What will change?
The planned reform aims to deemed return with a tax based on actual returns. This means you would pay tax on the income your assets really generated during the year. According to PwC, the new system would tax:
- Interest
- Dividends
- Capital gains
- Other real investment results
The reform would also make a clearer distinction between asset types, so savings, investments and property are taxed in a more accurate way. While the final rules are not yet confirmed, it is clear that the Netherlands wants a fairer and more transparent wealth tax system.
Why this matters for international residents
For international residents, the Dutch tax system often feels quite different from what they are used to and from my experience advising cross-border clients, Box 3 is frequently the area that creates the most confusion. Here are three reasons why internationals should pay attention.
- Foreign assets can be included
If you’re considered a tax resident in the Netherlands, you may be taxed on your worldwide assets. This can include:
- Savings accounts abroad.
- Investment portfolios in your home country.
- Property you still own outside the Netherlands.
A system based on real returns means you must have proper documents showing your actual income, such as annual statements, interest reports and property information.
- Your tax bill may go up or down
If your wealth consists mainly of savings, the new system may reduce your tax bill because savings usually produce low returns. If you invest heavily in shares or property, you may pay more tax in good investment years. The impact will depend on your personal situation and the final rules.
- Financial planning becomes more important
When real returns are taxed, timing matters. For example:
- Selling investments during a loss year could reduce your tax burden.
- Adjusting your investment risk may help manage future tax bills.
- Keeping clear records becomes essential.
For many internationals, this is a new approach to managing wealth.
What you can do now
Even though the reform is not final yet, you can already prepare:
- Make a clear overview of all your assets, including those outside the Netherlands.
- Keep annual financial documents, such as investment summaries and interest reports.
- Review your investment strategy, especially if you have high-risk assets.
- Ask for professional advice if your situation involves multiple countries.
Our advisory team can help you understand how the new rules may affect you and how to plan ahead.
Final thoughts
The upcoming Box 3 reform aims to create a fairer and more realistic way of taxing wealth. For international residents, the changes may bring both risks and opportunities. By understanding the system early and preparing in advance, you can avoid surprises and make confident financial decisions. If you want support or need help analysing your personal situation, we are ready to assist you.
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