Box 3 wealth tax in the Netherlands (2026): rates, changes, and how expats can optimise

What you need to know

Box 3 is the Dutch wealth tax that applies to your savings, investments, and other assets above a tax-free threshold. For 2026, the tax-free allowance has been reduced to EUR 51,396 per person (EUR 102,792 for fiscal partners). The government scrapped a planned increase in the deemed return on investments, keeping the rate at 5.88%. A major reform switching to taxation based on actual returns is expected from 1 January 2028. Last verified: 2026-03-24.

What is Box 3?

The Dutch income tax system divides your income into three "boxes". Box 1 covers employment and business income. Box 2 covers income from a substantial shareholding (5% or more in a company). Box 3 covers income from savings and investments, known formally as vermogensrendementsheffing.

Unlike most countries, the Netherlands does not tax your actual capital gains or investment returns in Box 3. Instead, the tax authorities (Belastingdienst) assume you earned a fictional "deemed return" on your assets and tax that assumed income at a flat rate. This means you pay Box 3 tax regardless of whether your investments went up or down in a given year.

Box 3 applies to a wide range of assets: bank savings, stocks, bonds, mutual funds, ETFs, cryptocurrency, real estate that is not your primary residence, and other valuables. Your primary home and pension assets are excluded.

2026 rates and thresholds

The Belastingdienst divides your Box 3 assets into three categories, each with its own deemed return percentage. These percentages are updated annually based on actual market data.

Asset category	Deemed return 2025	Deemed return 2026
Bank savings (banktegoeden)	1.03%	Approximately 1.37%
Other investments (overige bezittingen)	5.88%	5.88%
Debts (schulden)	2.47%	Approximately 2.70%

Important: The rates for bank savings and debts are provisional and are typically finalised by the Belastingdienst during the tax year. The "other investments" category was originally planned to increase to 7.78% for 2026, but the Dutch government scrapped this increase due to concerns about its impact on the rental property market. Always check the Belastingdienst website for the most current rates.

Tax-free allowance (heffingsvrij vermogen)

Year	Per individual	Fiscal partners
2025	EUR 57,684	EUR 115,368
2026	EUR 51,396	EUR 102,792

This means that you only pay Box 3 tax on assets above these thresholds. If your total Box 3 assets minus debts fall below the allowance, you owe nothing.

Tax rate

The flat tax rate on your calculated deemed income is 36% for both 2025 and 2026. This rate applies to the deemed return, not to the total value of your assets.

How Box 3 is calculated

The calculation works in four steps:

Step 1: Determine your net Box 3 assets. Add up all your Box 3 assets (savings, investments, property other than your home) and subtract qualifying debts. Only the portion above the tax-free allowance is taxable.

Step 2: Split your assets by category. The Belastingdienst applies different deemed return rates to each category. Your bank balances get the savings rate, your investments and other assets get the higher rate, and your debts reduce the total using the debt rate.

Step 3: Calculate the weighted deemed return. For each category, multiply the value by the deemed return rate. The weighted average of these gives your total deemed income.

Step 4: Apply the 36% tax rate. The deemed income is taxed at 36%.

Example calculation for 2026

Suppose you are a single individual with EUR 120,000 in savings and EUR 80,000 in investment funds, with no debts.

Your total Box 3 assets are EUR 200,000. After the tax-free allowance of EUR 51,396, the taxable base is EUR 148,604.

The deemed return is calculated as follows: the proportion in savings (EUR 120,000 / EUR 200,000 = 60%) is taxed at the savings rate of approximately 1.37%, while the proportion in investments (EUR 80,000 / EUR 200,000 = 40%) is taxed at 5.88%. The weighted deemed return rate is approximately (0.60 x 1.37%) + (0.40 x 5.88%) = 0.82% + 2.35% = 3.17%.

Applied to the taxable base: EUR 148,604 x 3.17% = EUR 4,711 deemed income. At 36% tax: approximately EUR 1,696 in Box 3 tax for the year.

Note: This is a simplified example. The actual calculation by the Belastingdienst may differ slightly due to rounding and specific allocation rules.

How expats are affected

If you are a tax resident of the Netherlands, your worldwide assets fall under Box 3. This includes bank accounts held abroad, foreign investment portfolios, and real estate in other countries. Moving to the Netherlands means you need to declare everything on your annual tax return (aangifte).

The 30% ruling and Box 3

Until the end of 2024, expats benefiting from the 30% ruling could opt for "partial non-residency" status. This meant their Box 2 and Box 3 assets were treated as if they were a non-resident, effectively exempting most foreign investments from Dutch wealth tax.

This benefit was abolished as of 1 January 2025. From 2025 onwards, all 30% ruling beneficiaries pay Box 3 tax on their worldwide assets, just like regular Dutch tax residents. This is a significant change that increases the tax burden for many expats.

Double taxation treaties

If you hold assets in a country that has a tax treaty with the Netherlands, you may be able to avoid being taxed twice on the same assets. For example, if you own property in your home country that is taxed there, the treaty may give the right to tax that property to the country where it is located, reducing your Dutch Box 3 base. Consult a cross-border tax adviser to understand which treaty provisions apply to your situation.

The reference date

Box 3 assets are measured on 1 January of the tax year. This is called the peildatum (reference date). Whatever you own on 1 January 2026 determines your 2026 Box 3 liability. This creates a planning opportunity: if you can legitimately reduce your taxable assets before 1 January, you reduce your Box 3 bill for the entire year.

The counter-evidence rule (werkelijk rendement)

Following the landmark Supreme Court ruling in December 2021 (the Kerstarrest), taxpayers can now demonstrate that their actual return was lower than the deemed return. If you can prove this, the Belastingdienst must base your tax on the actual return instead.

This is particularly useful if you held mostly cash savings during a period of low interest rates, or if your investments lost value. You can submit the "actual return" form (werkelijk rendement) as part of your tax return. The Belastingdienst will then compare your actual return with the deemed return and apply whichever is lower.

Keep in mind that proving actual return requires thorough documentation: bank statements, brokerage reports, and records of all asset values at the start and end of the year.

What is changing in 2028?

The Dutch Parliament approved a new Box 3 regime in February 2026 that will take effect from 1 January 2028. Under the new system, the deemed return will be replaced entirely by taxation based on actual returns.

Key features of the 2028 reform:

Actual returns: You will be taxed on the real income your assets generate, including realised and unrealised capital gains, dividends, interest, and rental income.

Same tax rate: The 36% rate is expected to remain.

Broader base: The new regime may capture returns that are currently undertaxed under the deemed system.

Until 2028, the current deemed return system with the counter-evidence option remains in place. The transition is designed to be gradual, and the government may adjust the details before implementation.

How to file your Box 3 tax

Box 3 is part of your annual income tax return (aangifte inkomstenbelasting). Filing typically opens on 1 March and the deadline is 1 May for the previous tax year. For the 2025 tax year, you file between 1 March and 1 May 2026.

Step 1: Log in to the Belastingdienst portal using your DigiD.

Step 2: The Belastingdienst pre-fills much of your Box 3 information using data from Dutch banks and financial institutions. Check these figures carefully, especially for foreign accounts.

Step 3: Add any assets not pre-filled, including foreign bank accounts, investment portfolios, real estate abroad, and cryptocurrency holdings.

Step 4: Declare any qualifying debts (such as personal loans, but not your mortgage on your primary home, which falls under Box 1).

Step 5: If your actual return was lower than the deemed return, file the counter-evidence form.

Step 6: Submit and check for any provisional assessment or refund.

Common mistakes expats make

Forgetting foreign accounts: All worldwide assets must be declared. The Netherlands participates in the Common Reporting Standard (CRS), which means the Belastingdienst receives data from tax authorities in over 100 countries. Failing to declare foreign accounts can lead to penalties.

Assuming the 30% ruling still exempts Box 3: Since 2025, the partial non-residency status no longer applies. Many expats are caught off guard by a significantly higher tax bill in their first filing year after the change.

Not claiming the counter-evidence rule: If your actual return was below the deemed return (for example, if markets dropped or you held mostly low-yield savings), you can save money by filing for actual-return taxation. Many taxpayers do not bother, leaving money on the table.

Ignoring the reference date: Assets are measured on 1 January. Large purchases or sales in late December or early January can shift your entire annual liability.

Double-counting the primary home: Your own home (eigen woning) and its mortgage belong in Box 1, not Box 3. Do not include them in your Box 3 declaration.

Frequently asked questions

Do I pay Box 3 tax if my assets are below the threshold?

No. If your total Box 3 assets minus debts are below EUR 51,396 (2026), you owe no Box 3 tax. Fiscal partners share a combined allowance of EUR 102,792.

Is cryptocurrency taxed under Box 3?

Yes. Cryptocurrency holdings are classified as "other investments" and taxed at the higher deemed return rate (5.88% for 2026). The value on 1 January counts. You can explore crypto platforms available in the Netherlands on Capmap.

Can I deduct my mortgage from Box 3?

No. Your primary home mortgage is a Box 1 item. However, other debts (such as personal loans or margin loans) may qualify as Box 3 debts and reduce your taxable base.

What if I moved to the Netherlands partway through the year?

If you became a Dutch tax resident during the year, your Box 3 assets are assessed on the first day you became a resident (not 1 January). This is a pro-rata calculation. Consult the Belastingdienst or a tax adviser for the exact rules.

Will the 2028 reform mean higher or lower taxes?

It depends on your situation. If your actual returns are consistently lower than the deemed return (for example, holding cash savings), the new system will likely mean lower taxes. If your investments earn above the deemed rate, you could pay more. The intent is to make the system fairer by taxing what you actually earned.

How do I know my actual return for the counter-evidence rule?

Your actual return includes all income from your Box 3 assets: interest, dividends, capital gains (both realised and unrealised), and rental income, minus costs directly related to those assets. You need statements from all your banks and brokers showing values on 1 January and 31 December.

Are pension savings included in Box 3?

No. Pension assets held in recognised pension schemes (pensioen) and annuities (lijfrente) are exempt from Box 3. They are taxed in Box 1 when you receive payouts. You can learn more about pension providers in the Netherlands on Capmap.

Important disclaimer

This article is educational content, not tax or financial advice. Tax rules are complex and change frequently. Your individual situation may differ significantly from the general information presented here. Always consult a qualified tax adviser before making tax-related decisions. Capmap is not a tax advisory service.

Fees, rates, and regulations may change. Verify current details on the official government website (belastingdienst.nl). Last verified: 2026-03-24.