Other Changes in Box 3 Taxation

1. The deemed return for assets (overige bezittingen) in Box 3 will increase from 5.88% to 7.78%.

The Dutch government wants to change the method for calculating the deemed (forfaitair) return for assets in Box 3 that are not savings (e.g., second property, bonds, shares, other investments). Deemed return — this is the government's assumption of how much you could have earned on your assets. It does not depend on how much you actually earned — it is a standard rate applied to all taxpayers. Previously, the government only considered property price growth; now the formula will also include rental income and the benefit of personal use. This leads to an increase in the rate — from 5.88% to 7.78%. From 1 January 2026, Dutch residents will pay higher taxes on assets that are not savings. If you can prove that your actual return is lower than 7.78% — you have the right to pay tax on the actual return rather than the deemed one. Since the new Box 3 taxation system (based on actual returns) has been postponed until 2028, the government is temporarily raising the deemed return to compensate for a budget shortfall of €2.55 billion for 2027.

2. Abolition of the green investment tax exemption from 2028

Green investments — these are investments in funds that support sustainable development — for example, renewable energy, ecological construction, organic agriculture. The Dutch government previously provided tax exemptions (in the form of a tax-free amount) for such investments to encourage citizens to invest in the "green economy". In 2025–2026, this exemption has been significantly reduced compared to 2023-24, but still exists. In 2026 — €26 715 (€53 430 with a fiscal partner). When calculating Box 3 tax, the exemption amount must first be subtracted from the total value of green investments. If the green investment is €20,000, it is fully exempt. If €60,000 — then €33,688 is taxed (60,000 – 26,312). In 2027, only a symbolic exemption will remain — €200 (€400 with a partner). In 2028, the exemption will be fully abolished.

There is also a tax credit (heffingskorting), an additional credit applied to the final tax amount. In 2025–2027, it amounts to 0.1%, making it nearly symbolic.

3. Exclusion of the leegwaarderatio coefficient when renting property at below-market rates to relatives or acquaintances.

Leegwaarderatio — this is a reducing coefficient applied to the WOZ-waarde (official property valuation) when a property is rented out. Its size depends on what percentage the rent represents relative to the WOZ-waarde. For example, if the ratio of rent to WOZ-waarde is less than 1%, the coefficient is 73%, and if rent is 3-4% — the coefficient is 90%. If a property is rented at market rate — the leegwaarderatio applies, and the taxable property value decreases. If a property is rented to a relative or acquaintance at a below-market rate — the leegwaarderatio also applies, but this allows artificially reducing the tax base, even if the rent does not reflect market conditions. After all, property tax is calculated based on its WOZ-waarde. From 2026, if a property is rented at a below-market rate to a relative or acquaintance, the leegwaarderatio will no longer apply. In such cases, the property value for Box 3 will equal the full WOZ-waarde — without discounts. This prevents tax avoidance through fictitiously low rental prices.