Dutch Taxes – Part 4: Box 3

Today a new instalment of the Dutch Tax Series, and one that is important for those who want to reach FIRE. Wealth tax! Dutch Taxes – Part 4: Box 3

Dutch Taxes – Part 4: Box 3

In the Netherlands you do not have to declare income on rental properties, capital gains on shares/home sales, income from dividend or interest earned on savings. Instead the government wants to know your wealth. Your wealth consist of your assets minus debts.

Your wealth can thus include (among others):

  • Cash
  • Stocks/Bonds
  • Rental property/second home (minus mortgage/loan)
  • Loans to a private person or a business
  • Any other debts that are not covered under Box 1 or Box 2
Dutch Taxes – Part 4: Box 3

Return on Investment

The government will assume you have earned a certain Return on Investment (ROI) and will tax that assumed ROI (so not the actual wealth itself!).

For 2015 the government assumes you made a 4% return and charges a 30% tax on that return. However, you have a certain amount exempt from taxation (“heffingskorting vermogen”), which is € 21.139 for a single person and € 42.278 for a couple. The effective tax rate is therefore a fixed 1.2% on your wealth above the exception amount.

2017 Update

As of January 1, 2017 the following taxation is considered for a single person (you double the range for a couple):

Wealth BracketRangeAssumed Average Rate of ReturnEffective Taxation
1Up to €25.000N/Anil
2From €25.000 to €100.0002.9%0.87%
3From €100.000 to €1,000,0004.7%1.41%
4From €1.000.001 and up5.5%1.65%

2019 Update

As of January 1, 2019 this is the taxation for a single person (you double the range for a couple):

Wealth BracketRangeAssumed Average Rate of ReturnEffective Taxation
1Up to €30.360N/Anil
2From €30.361 tot €102.0101.93%0.58%
3From €102.011 to €1.020.0964.46%1.34%
4From €1.020.097 and up5.6%1.68%

So the lower end of wealth is taxed less and the upper levels get a higher tax bill in 2019. Also the amount exempt has gone up over the years.

2020 Update

As of January 1, 2020 the taxation breakdown for a single person (again, you double the range for a couple) is as follows:

Wealth BracketRangeAssumed Average Rate of ReturnEffective Taxation
1Up to €30.846N/Anil
2From €30.847 tot €103.6431.80%0.540%
3From €103.644 to €1.036.4184.22%1.266%
4From €1.036.419 and up5.33%1.599%

2021 Update

As of January 1, 2021 this is the new taxation breakdown for a single person (again, you double the range for a couple):

Wealth BracketRangeAssumed Average Rate of ReturnEffective Taxation
1Up to €50.000N/Anil
2From €50.000 tot €100.0001.90%0.570%
3From €100.000 to €1.000.0004.50%1.350%
4From €1.000.000 and up5.69%1.707%

Green Investments

There is also a double tax break for “environmentally friendly” investments (“Heffingskorting voor groene beleggingen”). The government has selected a few investments options that promote environmentally responsible developments/investments. Compared to normal investments, your wealth amount that is excluded (“vrijstelling”) from taxation is larger to the amount of € 57.385 for a single person and € 114.770 for a couple (for 2017).  These value have been increased for 2018 and 2019 (to €58.539).

Additionally, an increased tax break (“Extra Heffingskorting”) of 0.7% is also applicable of the amount that is excluded from taxation. In short, a pretty good tax reduction. However, we are unsure whether this make financial sense (e.g. if the benefit out way any lower (?) ROI for these funds, perhaps a future post!).


  1. So I have a house in the US (inherited from my mom), we reported it to the Belasting Dienst.

    Our Box 3 balance does include the value of the House + my stocks, and seems to have taxalbe “income” but the tax is zero’d out b/c of “Aftrek elders belast inkomen”

    We were pleasantly surprised that the final amount was Zero, but perplexed. Do you know how that amount is calculated? (The house did have about $5K in US (Texas) Property Taxes, but I don’t think that was referenced in in of the documents we sent in ).

    1. Hey James, without knowing the details of the tax treaty with the US (and not being a tax specialist, nor claim to be), its not unlikely that source tax paid in the US can be deducted from tax to be paid in Box 3. But you would have to find out what the details are of the tax treaty between our two countries before you know for sure! Property tax however cannot be used. Assuming you (permanently/temporarily) rent out the property, property tax is just an expense. Whatever income you end up with could be taxed in the US, this taxation amount is the value that you likely need to report on your Dutch tax filing.

      Still, depending on your wealth, the assessed value of the property and applicable deductions (including tax paid elsewhere), i would not surprise if you don’t owe any taxes at all!

  2. Could you please elaborate on the math? So if a single person has 100kEUR in the bank and let’s say that is the entire wealth what will the tax likely be? Thank you!

    1. Hey MS,
      See here for the 2019 details from the tax department (in Dutch): https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/belasting_betalen_over_uw_vermogen/grondslag_sparen_en_beleggen/berekening-2019/

      So if you have €100.000 as a single, you’d get the following:
      0-€30.360 = exempted from taxes = €0
      €30.360-€100.000 = €69.640 = effective tax rate 0.58% = €403.91 to be paid in wealth taxes (some deductions, like the heffingskorting, might still apply!)

  3. This seems devasting for someone relying solely on an investment portfolio. Particularly an expat like myself who may also be taxed on realized LTCG on the US-side. An annual wealth tax irrespective of market returns almost guarantees death by Sequence of Returns Risk. To maintain a SWR of say 3.5% with a portfolio of 1M+ Euro you would have to limit your withdrawals to 1.85%. Even with the social benefits of the Netherlands, that is downright depressing.

    1. You make a couple of good points, I’ve never looked at how the sequence of return risk is affected by wealth taxes. That would be an interesting assessment to do. Only downside is that the percentage of wealth tax is not stable either. Lot’s of unknowns here! The fact that you get also get taxed on capital gains makes it rather depressing indeed. Not sure how you would fixt that. That being said, real estate does provide some tax relieve in this country. Too bad the prices are sky high right now.

      1. Double tax treaty?

        I am looking into this now. Similarly, as a UK citizen with UK investments we are only charged on gains when those gains are realised e.g. when we remove them from an investment account.

        I am assuming, and hoping, that any money paid in tax on that money in NL (a form of capital gains) can be deducted from my UK tax bill when I eventually realise them in a few year. Does anyone have any information on this?

    1. Oops, that slipped through the crack (table was originally setup in the same way the belastingdienst made their table), thanks for pointing that out. All corrected now.

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