Box 3 of the Dutch income tax system taxes wealth — your savings, investments, and other assets (excluding your primary residence). Unlike most countries, the Netherlands does not tax your actual investment returns. Instead, a deemed return (forfaitair rendement) is calculated and taxed at a flat rate. This system has been controversial and has undergone significant changes in recent years.
How Box 3 Works
On January 1 (the peildatum, or reference date), the Belastingdienst looks at the total value of your Box 3 assets and liabilities. The process is as follows:
- Calculate total Box 3 assets (savings, investments, property, crypto)
- Subtract qualifying debts (with a threshold of approximately 3,700 euros per person)
- Subtract the heffingsvrij vermogen (tax-free allowance): 57,000 euros per person, 114,000 euros for fiscal partners
- Calculate the deemed return based on the composition of your remaining assets
- Tax the deemed return at 36%
Deemed Return Rates (2025)
The deemed return depends on how your assets are categorised:
- Savings (bank deposits, cash): 1.36% deemed return. This rate is updated annually based on actual average savings interest rates.
- Investments (shares, bonds, real estate, crypto, other assets): 6.24% deemed return.
- Debts: Deducted at a deemed rate of 2.50%.
The deemed return is calculated proportionally based on the share of savings versus investments in your total asset mix.
Example Calculation
Suppose you are single with 80,000 euros in savings and 50,000 euros in shares:
- Total assets: 130,000 euros
- Exemption: 57,000 euros
- Taxable base: 73,000 euros
- Savings share: 80,000 / 130,000 = 61.5%
- Investment share: 50,000 / 130,000 = 38.5%
- Deemed return: 73,000 x (61.5% x 1.36% + 38.5% x 6.24%) = 73,000 x 3.24% = 2,364 euros
- Box 3 tax: 2,364 x 36% = 851 euros
What Falls Under Box 3?
Assets included in Box 3:
- Bank savings and deposits
- Shares, bonds, and investment funds
- Cryptocurrency holdings
- Investment property (not your primary residence)
- Loans to others
- Cash, gold, and other tangible assets
Assets excluded from Box 3:
- Your primary residence (taxed under Box 1 via eigenwoningforfait)
- Substantial interest holdings of 5% or more (Box 2)
- Business assets of a sole proprietor (Box 1)
- Pension rights and lijfrente policies
Strategies to Minimise Box 3 Tax
Several legal strategies can reduce your Box 3 liability:
- Prepay debts: Pay down your mortgage or other debts before January 1 to reduce your net assets on the reference date.
- Maximise pension contributions: Move wealth from Box 3 into tax-exempt pension products (lijfrente, jaarruimte).
- Use your fiscal partner: If you have a partner, utilise both exemptions (114,000 euros total) and allocate assets optimally.
- Invest via a BV: For larger portfolios, holding investments in a BV moves them from Box 3 to the corporate tax regime.
- Green investments: Certain government-approved green funds have a separate Box 3 exemption of up to 71,251 euros.
Use our Box 3 calculator to estimate your wealth tax.