Box 3 in transition: fictitious or actual profit
Box 3 is the part of Dutch income tax that applies to your wealth. This includes savings, investments, second homes and other assets, minus your debts. If the value of your net assets exceeds the tax free threshold, you pay tax on the income from those assets. The rules are laid down in the Dutch Income Tax Act 2001 and are applied by the Dutch Tax Authorities.
The box 3 tax-free threshold
Dutch law gives every taxpayer a tax-free threshold (Dutch: heffingsvrij vermogen). Only the portion of your assets above this threshold is taxed in box 3. Here are the relevant thresholds:
Year | File on your own | File with fiscal partner |
2021 | € 50,000 | € 100,000 |
2022 | € 50,650 | € 101,300 |
2023 | € 57,000 | € 114,000 |
2024 | € 57,000 | € 114,000 |
2025 | € 57,684 | € 115,368 |
2026 | € 59,357 | € 118,714 |
If you have a fiscal partner, the thresholds can be combined and assets can be allocated between you. This allocation directly affects the final box 3 outcome.
How box 3 worked before
For many years, box 3 was based on a fictitious profit system. Instead of taxing what you actually earned, the law assumed that your assets generated a fixed profit. Different asset categories were assigned different percentages, regardless of real interest, dividends or investment results.
During periods of low interest rates, this led to situations where taxpayers paid tax on income they never received. The Dutch Supreme Court ruled that this could violate fundamental rights if the fictitious return was higher than the actual return. As a result, the government was required to provide legal redress and redesign the system.
Below is an overview of the fictitious profit rates used in box 3 for the relevant years. These percentages are set by law and differ per asset category.
Year | Savings | Investments/other assets | Debts |
2021 | 0.01% | 5.69% | 2.46% |
2022 | 0.00% | 5.53% | 2.28% |
2023 | 0.92% | 6.17% | 2.46% |
2024 | 1.44% | 6.04% | 2.61% |
2025 | 1.37% | 5.88% | 2.70% |
2026 | 1.28% | 6.00% | 2.70% |
These fictitious rates form the basis of the fictitious profit calculation under the transitional box 3 regime.
The move towards actual profit
Box 3 is currently in a transition phase. Since 2023, transitional legislation allows taxpayers to compare the fictitious profit with their actual profit. If your actual profit is lower than the fictitious calculation, you may apply the actual profit instead in your income tax return.
The Dutch government intends to fully move to taxation based on actual return as of 2028. From that moment onward, box 3 tax should be based on what you really earn, instead of fixed assumptions.
How we handle your income tax return
The transition from fictitious to actual profit makes box 3 significantly more complex, especially if you have international assets or multiple income sources.
When you file your Dutch income tax return through our online portal, we handle the entire return. We include both box 1, box 2 and box 3 as standard. We take into account fiscal partnership, apply the correct threshold for the relevant year, and assess how assets and debts should be allocated.
Where possible, we calculate both the fictitious profit and the actual profit for box 3. Based on that comparison, we make you a clear proposal and apply the calculation that is most beneficial for your personal situation. You do not need to choose between methods yourself. Through our online portal, the process remains clear, efficient and personal. You stay informed and confident that your box 3 position is handled carefully and professionally.
