Budget Day was only two weeks ago, and the Dutch government has already announced a new set of proposals. They affect Box 2, Box 3, income tax and social security. If you are an investor or a director-shareholder (DGA), this is one to read.
The main points
- Box 3 capital gains tax from 2028: shares, bonds, options and other financial instruments would move to a capital gains tax. The increase in value is then generally taxed when you sell or otherwise realise the asset, not every year as the value rises. A full capital gains system for the remaining Box 3 assets is intended from 2030.
- Box 3 tax-free allowance: proposed reduction to €30.846 per person in 2027 (currently €59.357). From 2028, it would be replaced by a €1.000 tax-free result.
- Box 3 deemed return on other assets: proposed increase of 1.5 percentage points in 2027.
- Box 2: the higher rate would temporarily drop from 31% to 29.2% from 2027, for four years.
- Excessive borrowing from your own company: the limit would gradually fall from €500.000 to €100.000 in five annual steps. Loans for your owner-occupied home remain excluded.
- Income tax: the threshold for the top rate would rise to €80.578, while the increase of the employment tax credit is limited to €133.
- Social security: several announced reforms of WW, disability benefits and IVA have been withdrawn from the budget for now, pending further talks with employers’ and employees’ organisations.
What this means for you
For savers, 2027 will likely be more expensive: with the allowance halved, more people will pay Box 3 tax. For investors, the move to taxing on sale is a big shift, and keeping a record of purchase dates and prices becomes important. For DGAs, the lower Box 2 rate is welcome, but if you owe your BV more than €100.000, it is worth starting a repayment plan now.
These are still proposals. The government has no majority in either house of parliament, so the final outcome may change. There is no need to act in a hurry, but it is a good moment to know where you stand.
Dutchtaxadvice follows the developments closely and will keep you updated. Questions about your situation? Companies and DGAs can book a free intro call. Individuals can start through the Expat Hub or book a tax consult.
Source: Letter from the cabinet to the House of Representatives (in Dutch)
About the Author
Mark Bastiaans is the Managing Director of Dutch Tax Advice. He graduated from Tilburg University in 2006 and previously worked at Big Four advisory firms and multinational enterprises. He specialises in international tax for expats and entrepreneurs in the Netherlands.
