In the Netherlands, savings and investments are taxed under Box 3 of the income tax system. The tax authorities calculate tax not based on actual income but on an assumed return set by the government. Here’s what you need to know for your 2024 tax declaration.
What needs to be declared in 2024?
If your total assets exceed €36,952 per person (€73,904 per couple), they must be included in your tax declaration. However, tax is only payable on amounts exceeding €57,000 (€114,000 per couple).
What assets are included in Box 3?
The following types of assets and liabilities must be reported in Box 3:
- Savings: This includes savings accounts, current account balances, premium deposits, cash holdings, and “green” savings exceeding the tax-free limit.
- Investments and other assets: Such as a second home, stocks, bonds, cryptocurrency, and securities.
- Deductible debts: These include negative bank balances, car loans, and non-deductible mortgages (i.e., mortgages not eligible for Box 1 deductions).
How is tax calculated in 2024?
The Dutch tax authorities apply a fictional return (assumed income) to different asset categories:
- Savings: 1.44%
- Investments and other assets: 6.04%
- Deductible debts: -2.61% (reduces taxable assets)
Step-by-step tax calculation
- Calculate the fictional return on your assets based on the percentages above.
- Apply the 36% tax rate for 2024.
Example tax calculation
If you have €100,000 in a savings account:
Fictional return:
€100,000 × 1.44% = €1,440
Tax payable:
€1,440 × 36% = €518.40
Reference date: January 1
When filing your tax return, report the value of your assets and liabilities as of January 1, 2024. This applies to all savings, investments, and deductible debts.
Option to declare actual income
Starting in the summer of 2025, taxpayers will have the option to report their actual income from savings and investments instead of using the fictional return model. If your real earnings are lower than the assumed return, you may be eligible for a tax refund.
Final thoughts
Understanding Box 3 taxation is crucial for anyone with savings or investments in the Netherlands. Keep track of your financial assets, be aware of the applicable thresholds, and stay informed about the option to report actual income in 2025. For detailed guidance, consult the Dutch Tax Authority or a tax specialist.