The Netherlands Ministry of Finance has published a letter to the House of Representatives regarding the submission of a draft bill to reform Box 3 income taxation, which includes income from savings and investments, on 16 May 2025.
The reform shifts from taxing a deemed return to taxing actual returns on savings and investments.
As previously reported, the Netherlands Ministry of Finance announced a bill to reform the taxation of Box 3 income on 19 June 2024.
According to the explanatory memorandum issued with the letter, the proposed taxation highlights two methods: 1) taxing the annual change in asset value, whether realised or not, along with income such as interest, dividends, and rent; and 2) implementing a capital gains tax on profits from real estate, shares, and profit-sharing rights in startups.
Other notable reforms include replacing the tax-free allowance with a tax-free return (exemption) and new rules for offsetting losses against future income.
The reform is set to take effect on 1 January 2028.
Earlier, on 13 March 2025, the government submitted a draft legislation on the “rebuttal provision” for the revised “Box 3” (wealth tax) regime to the lower house of Parliament. The Box 3 income includes debts, savings, and investments, with updated rates for 2024: 1.44% for savings, 2.61% for debts, and 6.04% for investments.
