Box 3 income: the Dutch income from savings and investments for non-resident taxpayers

In this Chapter, the following topics will be discussed:

The taxation of income from savings and investments for non-residents

In the Netherlands, income enjoyed by non-residents which originates from certain Dutch savings and investments is subject to tax as income in Box 3. There are differences between the taxable basis for resident taxpayers and non-resident taxpayers for Box 3.

The taxable basis for non-resident taxpayers with Box 3 income

Until 2022, the 'old' regime applied. Rather than taxing the actual income received from savings and investments, Dutch law assumes a return on investment on net assets (assets minus debts). From 2023, a 'new' regime applies in which the actual assets are taxed, so there is no longer an assumption on the part that is saved or invested. However, the returns are still fictitious, but are close to the actual rates of return for savings or investments.

The rules for determining the Box 3 income are further in essence the same as the rules which apply to resident taxpayers. The main difference is that the taxable base for the Box 3 income (in Dutch: “Rendementsgrondslag”) is smaller.

The taxable base for non-resident taxpayers consists of the value of certain Dutch source assets less the value of certain Dutch liabilities.

Dutch sourced assets and liabilities

Dutch sourced assets are:

• real estate situated in the Netherlands;
• rights which directly or indirectly relate to real estate situated in the Netherlands, including rights which relate to the exploration or exploitation of Dutch natural resources;
• participations in the profits of an enterprise which is effectively managed in the Netherlands insofar these participations do not originate from a shareholding or employment and the income is not already taxable in the Netherlands as Box 1 or Box 2 income. 

Only liabilities/debts which can be allocated to qualifying Dutch source assets can be considered in the taxable basis of the Box 3 income.

If the taxpayer has taxable Dutch source assets at the beginning of the year but was not taxable yet in the Netherlands at that moment, or the taxpayer stopped to earn Box 3 income in the course of the year by other reasons than decease, the reference date is still the beginning of the year but the taxable base must be determined pro-rata.

Tax deductions and allowances

The Box 3 income may not be reduced with the personal allowances.

What we can do for you?

We are professional tax lawyers and we can advise you on your personal tax position and handle the preparation and filing of your annual Dutch personal income tax return and other tax compliance matters on your behalf.

We have very competitive rates for individuals and we can prepare and file your personal income tax return (and take care of other personal income tax compliance) on the basis of fixed prices which are agreed upon with you in advance.

The price for a specific tax return is dependent on your personal circumstances and the service which you wish to receive from us.

Please feel free to use our ONLINE FEE CALCULATOR for determining the fixed fee which you would have to pay us for the preparation of your personal income tax return.