New step toward taxation based on actual returns in Box 3

On May 19, 2025, State Secretary Van Oostenbruggen submitted the legislative proposal “Actual Return Taxation in Box 3” to the Dutch House of Representatives. This proposal introduces a system in which assets in Box 3 will be taxed based on the actual return achieved. The intended implementation date is January 1, 2028. 

According to the State Secretary, this proposal marks a significant milestone. “We want to move away from the current system which is based on a notional return on savings and investments. This proposal brings us closer to a fairer method of taxation, with a strong balance between execution and long-term sustainability.” 

Taxation on actual returns

Under the new system, taxpayers will only pay tax on the actual income earned from their assets. This means savers with lower returns will pay less tax than investors who earn higher returns. According to the Dutch government, this approach better aligns with the public’s sense of fairness. 

The return is divided into two components: 

• Direct return such as interest, rent, and dividends, minus applicable costs 

• Indirect return referring to changes in the value of assets like stocks or real estate 

Most assets will be taxed annually based on value increase, using a capital gains accrual method. In specific cases such as real estate or shares in startups, taxation will occur upon sale using a capital gains realization method. 

Pre-filled tax returns and loss carryforward 

The Dutch Tax Administration aims to pre-fill tax returns for approximately 2.5 million taxpayers, using data from Dutch financial institutions. This is intended to reduce the administrative burden for individuals. 

If a loss is incurred on assets, it may be carried forward and offset against future Box 3 income. The primary residence will remain in Box 1 and is not affected by this proposal. 

Updated definition of startups 

For shares in startups, taxation will occur only at the time of sale. A revised definition of startups is also being introduced to better reflect the unique characteristics of these businesses. This change will be added to the proposal through a legislative amendment. 

What does this mean for you as an asset owner?

Over the next few years, taxpayers and their advisors can prepare for this change. One important development is the Box 3 Counter Evidence Bill, introduced on March 14, 2025. Based on this, from the summer of 2025 it will be possible to apply to the Dutch Tax Administration for a refund of overpaid Box 3 tax (when the notional return was higher than the actual return), with retroactive effect to 2017. 

Note! This may also apply to expats. 

Until now, employees with the 30% ruling were often not subject to taxation in Box 3. Indeed, by opting for the partial non-resident tax status, they were treated as foreign taxpayers for Box 2 and Box 3, despite living in the Netherlands. 

From January 1, 2025, this will change for employees who started using the 30% ruling for the first time from January 1, 2024. They can no longer opt for the partial non-resident tax status. This means that as of tax year 2025 they will have to report their worldwide assets in Box 3, just like any other resident of the Netherlands. They will thus fall under the current Box 3 legislation, the transitional measures as well as the new system that will be introduced in 2028. It may be beneficial to file a provisional income tax return for 2025 now, to avoid being faced with a high tax assessment including interest in 2026. 

Employees who already used the 30% ruling before January 1, 2024, will retain the right to the partial on-resident tax status through 2026.

Prepare well? 

Our specialists are ready to help you identify the consequences and make the right preparations. Contact us for a no-obligation consultation. Please feel free to contact us. We will be happy to help you and think with you about the necessary steps.