In the Netherlands, there is no direct tax on capital gains. Instead, the tax system focuses on the taxation of total assets held by individuals - the wealth tax - known locally as Vermogensbelasting. Wealth tax reporting is integrated into the annual income tax return process where individuals must declare their total net worth as of 1 January of the tax year. The Dutch tax authority, Belastingdienst, offers a digital service for filing tax returns, which must be submitted by 1 April of the year following the tax year.
Wealth Tax
For the year 2023, the Netherlands imposes a wealth tax at a rate of 32% on the estimated return of investments, savings, and debts. This taxation is conducted under the Box 3 taxation method (Box 3 belasting) which applies to the assumed return on all investments, including ETFs. The key features of this system are as follows:
Assumed Return Rate: The government presumes a uniform return of 6.17% across all forms of investments for the year 2023, which means this system applies irrespective of the actual gains or losses made on investments
Tax-Free Allowance: There is an exemption threshold set at €57 000 for the year 2023. Only the net worth exceeding this amount is subject to taxation.
Tax Rate: The rate applied to the presumed return is 32%.
Debt Threshold: The first €3 400 of debt is not deductible from your net worth to calculate the tax base. Meaning that only debts exceeding €3 400 can reduce your taxable net worth.
For detailed information regarding the Box 3 taxation method for the year 2023, including calculation specifics and potential deductions, please refer to the official website: https://www.belastingdienst.nl/wps/wcm/connect/en/income-in-box-3/content/calculation-box-3-income-2023
Vermogensbelasting calculation example:
The 2023 box 3 assumed gain rates on assets are as follows (from the Belastingdienst website):
Scenario 1 - ETF investment was made in 2022
Determining the taxable amount in 2023
All values as of 01.01.2023
€50 000 in the bank as savings
€25 000 in investments (ETFs at market value)
€15 000 in debt (student loan)
Calculate the return per asset type
Savings: €50 000 * 0.01% = €5
Investments: €25 000 * 6.17% = €1 542.5
Debt (excluding the debt threshold of €3 400):
-(€15 000 - €3 400) * 2.46% = -€285.36
Total taxable amount: €5 + €1 542.50 - €285.36 = €1 262.14
Determining the final tax in 2023
Calculate total assets (savings + investments - debt):
€50 000 + €25 000 - €11 600 = €63 400
Calculate the rate of return on your assets (taxable amount / total assets):
€1262.14 / €63 400 = 1.99%
Calculate the basis for savings and investments (you do not have to pay tax on €57 000 of your assets):
€63 400 - €57 000 = €6400
Calculate income from taxable assets:
€6400 * 1.99% = €127.36
Total tax: €127.36 * 32% = €40.76
Scenario 2 - ETF investment was made in 2023
Determining the taxable amount in 2023
All values as at 01.01.2023
€75 000 in a bank as savings
€0 in investments
€15 000 in debt (student loan)
Calculate total assets
Determining the final tax in 2023
Calculate total assets (savings + investments - debt):
€50 000 + €0 - (€15 000 - €3 400) = €38 400
As your total assets fall below the €57 000 threshold, no box 3 tax is applicable.
Please note, this example is only applicable to the 2023 tax year (01.01.2023 - 12.31.2023)
You can find more information regarding other tax years on the belastingdienst website.
Mintos does not provide tax advice. For specifics on local tax regulations, we recommend you obtain advice from the Tax Authorities or independent advice from tax consultants.