Wealth tax Netherlands - The TaxSavers (2024)

In the Netherlands, your savings and investments are taxed in box 3. The wealth tax (or: box 3 taxation) works differently than the taxation on income from work (box 1). As soon as your assets exceed the tax-free capital threshold, you have to pay wealth tax in box 3. There has been a lot to do with the wealth tax. In 2021, a new calculation method based on the savings variant is introduced. According to the planning, a capital gains tax system will be introduced in 2025 or 2026.

Wealth tax 2023-2024

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Box 3 tax Netherlands

The Dutch tax system has three boxes for the income tax return. It is important to know that your capital is taxed in box 3. Here, no tax is levied on actual returns (yet). Until 2021, your assets were completely lumped together, on which a fictitious return was calculated. For many people, this return is higher than they achieved on their assets. The Dutch tax authorities work towards a capital gains system for box 3 as well. However, the capital gains tax system will be finished in 2026 at the soonest. Until then, temporary rules apply.

How does wealth tax work?

Until the plans on capital gains tax are finalized, the flat-rate saving option will be used as bridging legislation. The amount is still based on a fictitious return, but based on the actual composition of assets, broken down into three categories:

  • savings
  • other investments
  • debts

Wealth tax Netherlands - The TaxSavers (1)

The Dutch tax authorities use a different fictitious return for each asset component. You pay 32% wealth tax on the total notional return in 2023. From 2024 this will be 36%. In the table below you can see the fictitious returns that the Tax Authorities calculate. The percentages for investments and other assets are already fixed. The percentages for bank balances and debts are still provisional. The Tax Authorities will determine these percentages at the beginning of 2025.

Asset component202220232024
Investments/other assets5.53%6,17 %6,04%

Tax-free allowance

Fortunately, you do not have to pay tax on all your assets, as there is an exemption. For the year 2023, the tax-free allowance is €57,000 (€114,000 applies to tax partners). The tax-free allowance will remain the same in 2024.

Debt threshold

Debts reduce your assets, but you must pay attention to the debt threshold. For 2022, this debt threshold is €3,200 per person. In 2023, this threshold will be increased to €3,400.

Help with the wealth tax

How is wealth tax calculated?

The new calculation method will be used in your 2023 income tax return. In general, the new method is more beneficial for people with a lot of savings.

To give you an idea of ​​the new calculation method based on We will give you an example of the savings variant.

We assume that you do not have a tax partner. You have a total of €40,000 in savings, €80,000 in investments and a debt of €8,000 (after the debt threshold, €4,600 remains for the calculation in 2023). This makes your total assets € 115,400.

Step 1: calculate the total fictitious return on assets

  • Return on savings (€ 40.000 x 0,36%) = € 144
  • Return on investment (€ 80.000 x 6,17%) = € 4.936
  • Return on debt (€ 4.600 x 2,57%) = € -119
  • Total return = € 4.961
  • The return percentage on the total assets is (4.961 / 115.400 x 100) 4,29%.

Step 2: determine the basis for savings and investments

The basis from savings and investments is €58,400 (€115,400 minus the tax-free allowance of €57,000).

Step 3:determine the notional return and the wealth tax to be paid

The fictitious return is € 2,505 (4.29% on € 58,400). You will pay €801 in tax on this in 2023 (32%).

Until 2021: fictitious return

Until 2021, box 3 calculates a notional return on your capital. This notional return is taxed against 31% in 2021. The tax authorities assume that the more capital you have, the more returns are achieved. There are three categories:

  1. Assets up to € 50,000. In the first category, you get a return of 0.03% on 67% of your assets and a return of 5.69% on the remaining 33%.
  2. Assets from € 50,000 to € 950,000. On the second write, you get a return of 0.03% on 21% of your assets and a return of 5.69% on the remaining 79%.
  3. Assets from € 950,000. On the third write, you get a return of 5.69% over 100% of your assets.

You pay 31% tax on the notional return in 2021.

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Do you have questions about the box 3 taxation? Or other tax-related questions? We are happy to help. You can contact us using the details mentioned below.

Wealth tax Netherlands - The TaxSavers (2024)


How is the wealth tax calculated in the Netherlands? ›

The Dutch tax authorities use a different fictitious return for each asset component. You pay 32% wealth tax on the total notional return in 2023. From 2024 this will be 36%. In the table below you can see the fictitious returns that the Tax Authorities calculate.

What is the argument for the wealth tax? ›

Arguments Made in Favor of a Wealth Tax

Proponents of the wealth tax argue that it could help address the United States' rising wealth and income inequality while also generating revenues.

What are the pro wealth tax arguments? ›

Those who argue that the United States should create a wealth tax argue that doing so will ensure that top-earners pay their “fair share” in taxes. They claim that multi-millionaires and billionaires find tax loopholes that allow them to pay a lower tax rate than other Americans, which they say is economically unfair.

How are savings taxed in the Netherlands? ›

You pay tax on income from your wealth, including savings, shares and a second home. It is calculated as the value of all assets (such as savings and shares) minus any debts. Part of your wealth is not taxable: the capital yield tax allowance. You pay 30% tax on your taxable income from savings and investments.

Which country has highest wealth tax? ›

However this varies from country to country, the highest would be that of Luxembourg where it accounted for 7.18% of total tax revenue in 2018, the lowest would be Germany where it accounted for 0.03% of total tax revenue in 2018. Estimates for a wealth tax's potential revenue in the United States vary.

Why is tax so high in Netherlands? ›

The tax revenue funds public spending in the Netherlands, including healthcare, education, and social security benefits. In 2024, the Dutch government is projected to raise around €402.9 billion in taxes. Most of this will come from income tax, social security contributions, and Value Added Tax (VAT).

What is the problem with the wealth tax? ›

Wealth taxes are also bad for the economy overall. Even owners of successful firms might not have enough cash to pay the tax on the value of their companies in any given year, especially if the tax is as much as 20% on unrealized gains, and may need to dilute their ownership.

What are the negatives of a wealth tax? ›

A wealth tax is difficult to administer, tends to encourage tax evasion, and has the potential to drive the wealthy away from countries that enforce it. These caveats, coupled with debates about how to implement it fairly, perhaps explain why so few countries in the world impose such a tax on their residents.

Will a wealth tax hurt the economy? ›

The revenue collected will fall short of expectations. Worse, the tax will damage the economy. Today's ablest entrepreneurs will be forced to devote their time to defending their fortunes against the predation by the one or more states that lay claim to their wealth.

Why are people against wealth tax? ›

A wealth tax has all the existing bad features of the current income tax — complex, expensive to administer, costly to comply with, subject to manipulation and avoidance by those with the most resources and badly distorting of economic activity and capital formation.

Does a wealth tax violate the Constitution? ›

rule into a fundamental limitation to Congress's taxing power. Under this interpretation, the Constitution allows Congress to enact an unapportioned wealth tax but would still require apportionment for some other forms of taxes, such as a tax on real estate alone.

Why is the Netherlands considered a tax haven? ›

Effectively, the Netherlands is a conduit country that helps to funnel profits from high-tax countries to tax havens. Particularly the Dutch Special Purpose Entities attract income, often as interest and royalty payments, and pass it on, effectively untaxed, to tax havens.

Is inheritance taxed in the Netherlands? ›

In the Netherlands, you pay inheritance tax on any inheritance you receive. Inheritance consists of the estate (assets and liabilities) left by a deceased person, but there are some exceptions. Therefore, it is good to know the basics of Dutch inheritance law and respective taxes to avoid any surprises.

What is the 30% tax benefit in the Netherlands? ›

This rule is applied for a maximum duration of 60 months / five years but will decrease progressively. In the first 20 months, eligible individuals will continue to receive 30% of their gross salary tax free. In the following 20 months, the tax-free allowance will be reduced to 20%.

What is the wealth distribution in the Netherlands? ›

The top 10% wealthiest households own roughly two thirds of total net wealth (Graph 3), with the top 1% owning more than 25% in 2017. According to the OECD Wealth Distribution Database, the Netherlands has the second highest wealth inequality after the United States (OECD 2018).

How is wealth tax collected? ›

While the United States currently uses a federal income tax system rather than a wealth tax, most places around the country do have property taxes — which is a form of a wealth tax — but those are collected by state and local governments.

How does the 30% tax ruling work in the Netherlands? ›

The 30% reimbursem*nt ruling (also known as the 30% facility) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax-free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax.

How much are the Netherlands taxes compared to the US? ›

Again according to the OECD, the country with the highest national income tax rate is the Netherlands at 52 percent, more than 12 percentage points higher than the U.S. top federal individual income rate of 39.6 percent.

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