From 2028, taxation in box 3 based on actual returns

Background

In recent years, there has been much discussion about taxation in box 3. The Dutch Supreme Court has ruled in several cases that legally assumed return percentages violates property rights. In June 2024, the Dutch Supreme Court provided rules to calculate the actual return. Earlier this year, another bill was submitted to allow you to demonstrate your actual return for the period 2017 to 2027 by introducing a counter-evidence scheme in box 3.

Your actual return from 2028

In general, the actual return in box 3 from 2028 will be determined as follows. To determine the return in box 3, the return you have achieved with your assets and debts throughout the year will be considered. This includes both the regular benefits from your assets and the value changes of your assets. Costs can be deducted under certain conditions.

Regular benefits are income from assets such as interest, rent, and dividends. To determine the value changes, the value of your assets at the end of the tax year is compared with the value at the beginning of the tax year according to the capital growth method (main rule). This includes both unrealized and realized value changes. The value changes of real estate and shares and profit-sharing certificates in start-up companies in box 3 are determined using the capital gains method (exception). This only includes realized value changes. Therefore, the value changes of real estate are not taxed annually (as with other assets), but only upon realization (such as sale). You are then liable for box 3 tax on the actual profit (difference between the sale price and the historical purchase price).

For real estate, special rules are also introduced to determine the regular benefit. If a property is rented out for 90% or more of the year, the rental income constitutes the regular benefit. In other cases (with less than 90% rental during the year), a real estate surcharge is considered as regular benefit. The real estate surcharge is an assumed return on real estate and amounts to 3.35% of the market value (but for homes, the WOZ value applies). However, if the actual income is higher than the real estate surcharge, the actual income is taxed.

Rate, tax-free result, and losses

The bill proposes a rate in box 3 of 36% and a tax-free result of 1,800 euros per person. Additionally, loss compensation is made possible. If your actual return in a tax year is negative, you can offset this loss in future years with positive results. The loss must be greater than 500 euros.

What should I do now?

It is important to prepare for the possible consequences of the bill now. From 2028, it will no longer be possible to fall back on the legally assumed return percentages. The taxation of your assets may therefore change and become uncertain. Your tax advisor at Forvis Mazars can help you further understand the implications for your personal situation.