Draft legislation proposed for fiscal treatment of assets in the Netherlands (Box 3)

May 22, 2025

The Dutch government has proposed significant reforms to Box 3 of the personal income tax, shifting from a fictional income system to taxing actual returns on savings and investments.

Under the new system, taxpayers will be taxed annually on real income earned from interest, dividends, rent, and realized or unrealized gains on assets, minus associated costs. For real estate and shares in startups applies that only the realized gains are taxed. The effective tax rate remains at 36%.

A notable feature is the introduction of loss compensation in Box 3, allowing taxpayers to carry forward losses to offset future positive income. Additionally, the current tax-free allowance (in Dutch: “heffingsvrij vermogen”), will be replaced by a tax-free result (in Dutch: “heffingsvrij resultaat”) of €1.800 per year.

These changes are aimed to take effect on January 1st 2028. To meet that deadline, the Dutch Parliament must approve the draft no later than March 15th 2026.

Naturally we will keep you informed about any updates. Should you wish to discuss this matter with a tax advisor, please contact our colleague Maarten Tervoort.