Capital gains tax in Netherlands

Why the Netherlands has no conventional capital gains tax

Under the Dutch personal income tax (Wet inkomstenbelasting 2001) the three-box framework separates income into Box 1 (employment and owner-occupied housing), Box 2 (substantial shareholdings), and Box 3 (savings and investments). Box 3 is where most portfolio wealth sits, and it does not use a realisation-event capital gains model at all. Instead, the Belastingdienst taxes a deemed annual return on net assets above the tax-free allowance (heffingsvrij vermogen), regardless of whether the assets were sold or produced income. For 2025 the heffingsvrij vermogen is EUR 57,684 for a single taxpayer and EUR 115,368 for fiscal partners (source: Belastingdienst). Assets above that threshold are assigned category-specific fictitious yields, the weighted average yield is taxed at 36%, and the result is due whether or not any asset changed hands. Gains on disposal in Box 3 are therefore not a separate taxable event. See the Netherlands country overview for broader context on the Dutch personal income tax structure.

How does the Box 3 deemed return work in 2025?

For the 2025 tax year the Belastingdienst applies three asset-category deemed returns: 1.44% on bank and savings balances, 5.88% on other investments (shares, bonds, mutual funds, crypto, second homes held in private name), and 2.62% on debts (deducted). The Belastingdienst calculates the weighted average fictitious yield across the taxpayer's net assets above the heffingsvrij vermogen, then charges 36% tax on that deemed income. A taxpayer holding EUR 200,000 in a brokerage account (after the single-person exemption of EUR 57,684) therefore has a taxable deemed income of roughly EUR 8,367 (EUR 142,316 x 5.88%) and owes approximately EUR 3,012 in Box 3 tax -- a de facto wealth levy of about 1.5% on that excess balance, irrespective of actual market performance.

What did the Hoge Raad rule, and what is the counter-proof option?

The Dutch tax system faced two landmark rulings from the Hoge Raad (Supreme Court) that reshaped Box 3. On 24 December 2021 -- the so-called Kerst arrest (ECLI:NL:HR:2021:1963) -- the court held that the uniform 4% deemed-return system in force from 2017 violated Article 1 of Protocol 1 to the European Convention on Human Rights (peaceful enjoyment of property) and Article 14 ECHR (non-discrimination). The government responded with a Restoration Act (Wet rechtsherstel box 3) introducing per-asset-class deemed yields. On 6 June 2024 (ECLI:NL:HR:2024:704) the court ruled that the Restoration Act and the bridging law (Overbruggingswet box 3, the current 2023-onwards framework) carried identical constitutional defects: where actual returns fall below the fictitious yield the law still overtaxes and discriminates, with no margin of tolerance. As a result, from July 2025 the Belastingdienst made the Opgaaf Werkelijk Rendement (OWR) form available. Taxpayers whose actual Box 3 return -- including unrealised gains and losses, interest, dividends, and rental income, but excluding most costs -- is lower than the notional return can submit the OWR and have their assessment recalculated at the lower actual figure. Costs are not deductible except interest on Box 3 debts, and no tax-free allowance applies under the actual-return calculation. The counter-proof scheme (Wet tegenbewijsregeling box 3) entered into force on 19 July 2025, codifying this mechanism (source: Belastingdienst, taxsavers.nl).

How is Box 2 substantial shareholding taxed?

Box 2 of the Wet inkomstenbelasting 2001 -- the aanmerkelijk belang (substantial interest) regime -- applies when an individual holds at least 5% of the shares (or similar voting or profit rights) in a domestic or foreign company. Both dividends received and capital gains realised on disposal of such holdings fall into Box 2. For 2025 the rates are 24.5% on the first EUR 67,804 of Box 2 income and 31% on the excess. Fiscal partners may split EUR 135,608 between them at the lower 24.5% bracket. The dual-bracket structure replaced the prior 26.9% flat rate from 2024; the upper bracket was reduced from 33% to 31% for 2025. Box 2 losses may be carried back one year and forward nine years; a residual loss credit is available two years after the interest terminates (source: expat-service.nl, Blue Umbrella). For corporate shareholders the parallel regime is the deelnemingsvrijstelling (participation exemption), but that is a corporate-tax instrument outside Box 2.

What is the 2028 actual-return reform and what is its current status?

The structural answer to the Hoge Raad rulings is the Wet werkelijk rendement box 3 (Actual Return on Investment in Box 3 Act). The final bill was presented to the Dutch House of Representatives (Tweede Kamer) on 19 May 2025 and passed on 12 February 2026. It is now before the Senate (Eerste Kamer) with a targeted implementation date of 1 January 2028. The bill introduces a dual structure: a capital growth tax applying to most assets (shares, crypto, savings) taxes both income and unrealised appreciation annually at 36%, with a reduced tax-free allowance of EUR 1,800 per year; a capital gains tax applies only to immovable property and startup shares, taxing appreciation at the moment of realisation (typically on sale). Loss carry-forward is available above a EUR 500 threshold; no carry-back was included due to implementation costs. However, the Minister of Finance has indicated that amendments are needed and faces considerable Senate resistance, particularly over the annual taxation of unrealised gains (a liquidity burden) and the absence of a carry-back. The Council of State issued a negative opinion in December 2024. The 2028 date remains the official target but is not guaranteed. The current bridging regime -- with its OWR counter-proof option -- remains in force until a replacement actually enters into effect (source: KPMG, Meijburg, Deloitte, Belastingdienst). For a detailed analysis of how this reform may affect your specific holdings, consult a qualified tax professional registered in the Netherlands.

See the Netherlands country overview for related guidance on Dutch residency, double-tax treaties, and other personal tax obligations.