If you live in the Netherlands and invest, you will often deal with box 3. This tutorial explains the basics. It is not tax advice, and the rules are changing.
This explanation is meant for people who live in the Netherlands. Other countries have other rules.
What is box 3?
Box 3 is the part of Dutch income tax for savings and investments. In it, the tax authority does not tax the actual return you make, but uses a fixed percentage on your assets. That percentage is called the deemed return (in Dutch, fictief rendement).
Source: rijksoverheid.nl, consulted 10-10-2026.
What are your assets?
Your assets are the value of what you own minus your debts. Examples of what you own are savings, shares and a second home. Investments such as ETFs generally belong here too. For other assets, such as crypto, it is best to check on belastingdienst.nl how they are treated.
Source: belastingdienst.nl, consulted 10-10-2026.
The reference date: 1 January
You use the value of your assets and debts on 1 January. What happens in between, such as a rise or fall during the year, does not count separately in this system.
Illustrative example: on 1 January you hold € 30,000 in shares and ETFs and € 10,000 in savings, and no debts. Your assets are then € 40,000. Whether tax is due on that depends on the tax-free allowance and other parts of the calculation.
Source: belastingdienst.nl, consulted 10-10-2026.
Tax-free allowance
A fixed part of your assets is tax free. This is the tax-free allowance (heffingsvrij vermogen). For 2026 it is € 59,357 per person, and € 118,714 for fiscal partners together. The amount changes each year. In 2025, for example, it was € 57,684 per person.
Source: belastingdienst.nl, consulted 10-10-2026.
The rules are changing
The rules for box 3 have been changed several times in recent years, partly after court rulings. The tax authority still uses a deemed return. For investments and other assets, for example, the deemed return in 2025 was 5.88%. For the current percentages and the tax rate, see belastingdienst.nl.
There is also a move towards tax on the actual return. The government aims to introduce this from 1 January 2028. That is an aim, not a certainty. Until then, you can in certain cases report your actual return. How that works and for which years, you can read on belastingdienst.nl.
Source: rijksoverheid.nl and belastingdienst.nl, consulted 10-10-2026.
Frequent trading and other cases
If you invest in the usual way described above, your assets fall under box 3. In exceptional cases the tax authority may judge differently, for example if your trading looks more like work than investing. Consult an adviser in that case.
What can you do yourself?
- Keep your broker’s annual statement each year, showing the value on 1 January.
- Keep track of your purchases and sales, for example in a trading journal.
- Check the current rules on belastingdienst.nl each year.
- Ask a tax adviser for help if in doubt.
Step-by-step plan
- On 1 January, look up the value of all your assets and debts.
- Check belastingdienst.nl for the tax-free allowance and the rules for that year.
- Report your assets in your tax return.
- Keep your statements and supporting documents.
- Ask an adviser if in doubt.
Sources
Consulted on 10-10-2026:
- https://www.rijksoverheid.nl/onderwerpen/inkomstenbelasting/box-3
- https://www.belastingdienst.nl/wps/wcm/connect/nl/box-3/content/heffingsvrij-vermogen
- https://www.belastingdienst.nl/wps/wcm/connect/nl/box-3/content/met-welke-percentages-is-het-fictief-rendement-berekend
- https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/wat_is_uw_vermogen
- https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/belasting_betalen_over_uw_vermogen/hoe_berekent_u_uw_vermogen
This tutorial is educational and not tax advice. For your own situation, go to belastingdienst.nl or a tax adviser.
Work it out yourself
Test yourself
Practice questions to check your understanding, not advice.
How does box 3 work according to the tutorial?
- The tax authority taxes your actual return over the whole year
- Only profit on investments you sold is taxed
- The tax authority uses a fixed percentage on your assets (deemed return)
Show answer
Answer:C. The tax authority uses a fixed percentage on your assets (deemed return)
Box 3 does not tax the actual return you make, but uses a fixed percentage on your assets: the deemed return (fictief rendement).
Which date is the reference date for your assets in box 3?
- 1 January
- 31 December
- The day you file your return
Show answer
Answer:A. 1 January
You use the value of your assets and debts on 1 January. What happens in between does not count separately in this system.
On 1 January you have € 25,000 in shares and ETFs, € 8,000 in savings and € 3,000 in debt. What are your assets?
- € 36,000
- € 30,000
- € 33,000
Show answer
Answer:B. € 30,000
Assets are the value of what you own minus your debts: € 25,000 + € 8,000 − € 3,000 = € 30,000.
How high is the tax-free allowance (heffingsvrij vermogen) for 2026 per person, according to the tutorial?
- € 57,684
- € 118,714
- € 59,357
Show answer
Answer:C. € 59,357
For 2026 the tax-free allowance is € 59,357 per person (€ 118,714 for fiscal partners together). The amount changes every year.
Frequently asked questions
- Do I have to pay tax if I do not take money out of my investment account?
- Yes, you can. Box 3 looks at your assets on a fixed date, not at whether you withdraw or sell. Assets such as shares count. Whether you actually pay tax depends on the size of your assets and the tax-free allowance. For the current rules, see belastingdienst.nl.
- What happens if I do not report my investments?
- You have to report your assets in your tax return. If you do not, or report them wrongly, the Dutch tax authority can raise an additional assessment and sometimes a fine. If you spot a mistake, contact the tax authority or an adviser.
- Can I deduct losses?
- That depends on the system that applies to your year. Under a tax on a fixed return, your actual result does not count separately. The rules are changing, so check belastingdienst.nl and ask an adviser what applies to you.
- Should I set up a company to invest?
- That is a difficult tax decision with costs and consequences. This tutorial gives no advice on it. Discuss it with a tax adviser before you take steps.
- What if I invest with several brokers or in several countries?
- In your return you report everything that is part of your assets. Keep annual statements from every broker. If you have accounts abroad or want to be sure what to report, ask a tax adviser for help.