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Box 3 Tax Explained

From the Supreme Court ruling to the Wet Werkelijk Rendement — everything you need to know.

1

Background: the road to actual returns

On December 24, 2021, the Supreme Court (Hoge Raad) made a landmark ruling: the then-current Box 3 system violated property rights and the principle of equality. The system assumed taxpayers earned a high fictitious return, while reality — especially for savers — was much lower.

As a result, the Tax Authority (Belastingdienst) had to provide 'rechtsherstel' (legal remedy) for the years 2017-2022. Millions of taxpayers received refunds or revised assessments.

In June 2024, the Supreme Court made another important ruling: even under the transitional system (2017-2022), individual assessment was required when actual returns were lower than fictitious returns.
2

The current system (2023-2026)

While awaiting the definitive new law, an interim system based on categories applies. Each asset category has its own fictitious return:

CategoryFictitious returnTax (36%)
Bank savings1,44%0,52%
Investments (other assets)6,04%2,17%
Real estate6,04%2,17%
Debts (deductible)2,47%-0,89%
Tax-free allowance 2025: €57,684 per person (€114,000 per fiscal partners). Only wealth above this amount is taxed.

Calculation example — current situation

Situation: €200,000 fully invested (no fiscal partner)

Total wealth€200.000
Less: tax-free-€57.684
Taxable wealth€143.000
Fictitious return (6.04%)€8.637
Tax (36%)€3.109
3

The new law: Wet Werkelijk Rendement (2028)

The Dutch Lower House has approved the bill. The law introduces taxation on actually achieved returns — and that is a fundamental change.

What counts as return

  • Dividends and interest payments
  • Unrealised capital gains (annual increase)
  • Rental income
  • Annual real estate value increase
  • Sale gains upon realisation

Compensating measures

  • Losses can be offset against future gains
  • Tax-free allowance remains
  • Tax rate stays at 36%
  • Transitional arrangements for existing positions
Liquidity issue: You may need to sell shares or real estate to pay the tax on unrealised gains — even if you didn't want to.
4

The compounding problem

The biggest disadvantage of the new Box 3 law is the effect on compound returns. Every euro you pay in tax on unrealised gains can no longer grow.

20-year projection: €200,000 at 7% return

No tax
€773.937
Theoretical max
Box 2 BV
≈ €580.000
After exit tax
Box 3 (new)
≈ €490.000
After annual levy

* Indicative calculation. Use our calculator for your personal situation.

Calculate your situation
5

Impact by asset class

Savers

Limited

Interest is already a 'realised' return. At low savings rates, the tax is limited. Relatively little change compared to the current system.

Stock/ETF investors

High

Hit hardest. Annual mark-to-market taxation on price gains, even without selling. Large impact on buy-and-hold strategy.

Real estate investors

Very high

Double levy: rental income AND property value increase are taxed. Real estate is illiquid, worsening the liquidity problem.

Private pension savings

Structural

Net wealth at retirement age significantly lower due to annual levies. Longer horizons are proportionally harder hit.

6

Legal uncertainty — the law may still change

Note: A parliamentary majority has requested a separate bill for acapital gains tax (by Budget Day 2028) that would exclude unrealised gains. The final form of the law is therefore still uncertain.

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