TL;DR
- Box 3 taxes your wealth (savings, investments, real estate), not your income.
- Tax-free allowance: €57,000 per person (€114,000 for fiscal partners).
- The government assumes a fictitious return on your assets and taxes that at 36%.
- Your actual gains or losses don't matter under the current system.
- 30% ruling holders can often avoid Box 3 entirely via partial non-resident status.
What is Box 3?
The Dutch tax system divides income into three “boxes.” Box 1 covers income from employment and your primary home. Box 2 covers income from a substantial interest in a company (5% or more shareholding). Box 3 is the wealth tax — it covers savings, investments, and other assets.
Unlike most countries, the Netherlands does not tax your actual investment returns. Instead, the tax authority (Belastingdienst) assumes you earn a fictitious return on your wealth and taxes that assumed amount. This means you pay Box 3 tax even if your investments lost money, and you pay the same rate even if your returns were exceptionally high.
How Box 3 works in 2026
Your Box 3 liability is calculated based on the total value of your assets and debts on January 1, 2026 (the peildatum). The system works in four steps:
- Determine your net assets: Add up all Box 3 assets, subtract qualifying debts, then subtract the tax-free allowance (€57,000 per person).
- Split assets into categories: Your assets are divided into three categories, each with a different fictitious return rate.
- Calculate the fictitious return: Apply each category's rate to determine your assumed income.
- Apply the tax rate: Pay 36% tax on the total fictitious return.
The three asset categories
| Category | What it includes | Fictitious return |
|---|---|---|
| I — Savings | Bank accounts, deposits | 1.03% |
| II — Investments | Stocks, bonds, crypto, real estate (not primary home) | 6.04% |
| III — Debts | Qualifying liabilities (above €3,700 threshold) | 2.47% (deduction) |
Tax-free allowance (heffingsvrij vermogen)
In 2026, the first €57,000 of your net Box 3 assets is tax-free. If you file with a fiscal partner, the combined allowance is €114,000. Only wealth above this threshold generates a tax liability.
What counts as a Box 3 asset?
- Bank savings: All Dutch and foreign savings accounts, current accounts, and term deposits.
- Investments: Stocks, bonds, ETFs, mutual funds, options, and other securities.
- Cryptocurrency: Bitcoin, Ethereum, and all other digital assets are taxed as Category II (investments).
- Real estate: Second homes, holiday homes, buy-to-let properties, and land (valued at WOZ value or market value for foreign property).
- Cash and receivables: Cash holdings, loans to others, and outstanding receivables.
- Other valuables: Unlisted shares (without substantial interest), precious metals held as investment, and other financial assets.
What is exempt from Box 3?
- Primary residence: Your own home and its mortgage are in Box 1.
- Pension assets: Pension savings through your employer or personal pension products (lijfrente) are exempt.
- Business assets: Assets used in a sole proprietorship or partnership are taxed in Box 1.
- Substantial interest: Shares representing 5% or more of a company are taxed in Box 2.
- Green investments: Certified green investments (groenverklaring) up to €71,251 per person are exempt.
- Art and personal items: Household goods, cars, and art for personal use are not Box 3 assets.
Example: calculating your Box 3 tax
Let's walk through a realistic example for a single expat with a mix of savings and investments.
Example: single person, no fiscal partner
- Bank savings: €80,000
- Investment portfolio (ETFs): €120,000
- No qualifying debts
Step 1: Total assets = €80,000 + €120,000 = €200,000
Step 2: Tax-free allowance = €57,000
Step 3: Taxable base = €200,000 − €57,000 = €143,000
Step 4: Fictitious return on savings: €80,000 × 1.03% = €824
Step 5: Fictitious return on investments: €120,000 × 6.04% = €7,248
Step 6: Total fictitious return = €8,072
Step 7: Weighted return rate = €8,072 / €200,000 = 4.036%
Step 8: Fictitious return on taxable base = €143,000 × 4.036% = €5,771
Box 3 tax = €5,771 × 36% = €2,078
Example: fiscal partners, higher wealth
- Combined savings: €150,000
- Combined investments: €300,000
- Combined debts (above threshold): €50,000
Total assets: €450,000 − €50,000 debts = €400,000 net
Tax-free allowance: €114,000 (fiscal partners)
Taxable base: €400,000 − €114,000 = €286,000
Fictitious return: (€150,000 × 1.03%) + (€300,000 × 6.04%) − (€50,000 × 2.47%) = €1,545 + €18,120 − €1,235 = €18,430
Weighted return rate: €18,430 / €400,000 = 4.608%
Fictitious return on taxable base: €286,000 × 4.608% = €13,179
Box 3 tax = €13,179 × 36% = €4,744
Impact of the 30% ruling on Box 3
The 30% ruling is one of the most powerful ways to avoid Box 3 tax entirely. When you opt for partial non-resident taxpayer status (partieel buitenlands belastingplichtige), you are treated as a non-resident for Box 2 and Box 3 purposes. This means your worldwide savings and investments are exempt from Dutch wealth tax.
The only exception is a substantial interest (5%+ shareholding) in a Dutch company, which remains taxable in Box 2 even with partial non-resident status.
For 30% ruling holders
Opting for partial non-resident status is usually beneficial if you have significant Box 3 assets. However, it also means you lose some Box 1 deductions (such as mortgage interest). Run both scenarios through the tax return estimator to see which option saves you more.
Optimization strategies
While Box 3 is hard to avoid entirely, there are legal strategies to reduce your liability:
1. Time your peildatum
Since Box 3 wealth is measured on January 1, the value of your assets on that one date determines your entire year's tax. Some taxpayers strategically reduce their taxable wealth before the peildatum — for example, by making large purchases, paying off debts, or prepaying expenses in December. This is legal, but the Belastingdienst may scrutinize arrangements that are clearly artificial.
2. Green investments (groenbeleggingen)
Investments in certified green funds with a groenverklaring are exempt from Box 3 up to €71,251 per person (€142,502 for fiscal partners) in 2026. You also receive a separate tax credit of 0.7% on the exempt amount. This double benefit makes green investments one of the most effective Box 3 optimization tools.
3. Fiscal partner allocation
If you have a fiscal partner, you can freely allocate Box 3 assets between the two of you (the total must still match, but the split is your choice). This allows you to optimize which partner claims which assets to minimize the overall tax burden — for example, allocating more low-return savings to the partner with higher Box 1 income.
4. Maximize pension contributions
Pension assets are exempt from Box 3. Maximizing contributions to pension products (lijfrente or employer pension) converts taxable Box 3 wealth into exempt pension wealth. The trade-off is that pension payouts are eventually taxed as Box 1 income, but for many expats this is a favorable exchange.
5. Pay off your mortgage
Your mortgage on your primary home is not a Box 3 debt (it's in Box 1), but extra mortgage repayments reduce your savings, which reduces your Box 3 base. Depending on your mortgage interest rate versus the fictitious return rate, this may or may not be advantageous.
The Supreme Court ruling and transitional regime
In December 2021, the Dutch Supreme Court (Hoge Raad) ruled that the old Box 3 system — which applied a single blended fictitious return to all assets — violated property rights under the European Convention on Human Rights. The court found that taxpayers whose actual returns were significantly lower than the fictitious return were being unfairly taxed.
In response, the government introduced the current transitional regime (overbruggingswetgeving), which splits assets into the three categories described above. This is more fair than the old system but still uses fictitious returns rather than actual returns.
Future changes remain uncertain
The government's plan to tax actual returns (box 3 op basis van werkelijk rendement) was originally scheduled for 2027 but has been repeatedly delayed. As of early 2026, the timeline and final design remain uncertain. The transitional regime will stay in effect until a new system is enacted. Plan based on current rules, but be prepared for changes.
Filing an objection
If your actual returns were significantly lower than the fictitious return applied to your assets, you may have grounds to file an objection (bezwaar) against your Box 3 assessment. Following the Supreme Court ruling, the Belastingdienst has been processing mass objections and providing restitution in cases where the fictitious return exceeded actual returns. Consult a tax advisor to determine whether filing an objection is worthwhile in your situation.
Frequently asked questions
Do I have to pay Box 3 tax on assets held outside the Netherlands?
Yes. As a Dutch tax resident, you are taxed on your worldwide assets in Box 3, including foreign bank accounts, overseas investment portfolios, and real estate abroad (other than your primary home). However, if you have the 30% ruling with partial non-resident taxpayer status, you may be exempt from Box 3 entirely on non-Dutch assets.
When is Box 3 wealth measured?
Your Box 3 assets and debts are measured on January 1 of the tax year (the peildatum). Only the value on that single date matters for the entire year — changes during the year are irrelevant for that year's assessment.
Is my primary residence taxed in Box 3?
No. Your primary residence (eigen woning) and the mortgage on it are taxed in Box 1, not Box 3. However, a second home, holiday home, or investment property is a Box 3 asset.
Does the 30% ruling affect Box 3?
Yes, significantly. If you opt for partial non-resident taxpayer status under the 30% ruling, you are generally exempt from Box 3 tax on all assets except substantial interests in Dutch companies. This is one of the biggest tax advantages of the 30% ruling.
Can I offset Box 3 investment losses against the fictitious return?
No. Under the current fictitious return system, your actual investment gains or losses are irrelevant. You are taxed on an assumed (fictitious) return regardless of what actually happened. This is one of the most controversial aspects of the Dutch wealth tax.
What is changing with Box 3 in the future?
The Dutch government plans to replace the fictitious return system with a tax on actual returns. This was originally planned for 2027 but has been repeatedly delayed due to technical and legal complexities. The current transitional regime remains in effect until the new system is implemented.