Netherlands Personal Tax Guide (Inkomstenbelasting)

Box 2 — Substantial Interest (Aanmerkelijk Belang)

• Substantial interest threshold: A taxpayer has a substantial interest (aanmerkelijk belang) if they hold — directly or indirectly — 5% or more of the shares (or similar profit-sharing rights) in a company. Shares held by the taxpayer's partner and minor children are attributed.
• Box 2 tax rate: Income from a substantial interest — including dividends (dividenduitkeringen) and capital gains on share sales — is taxed at a flat 24.5% (2026 rate, scheduled to increase to 31% by 2027 under the current coalition agreement). The first €67,000 of box 2 income per person is taxed at 24.5%; amounts above this threshold are taxed at 31% (2026 — this two-tariff system was introduced in 2024).
• Deemed dividend (gebruikelijk loon — DGA): A director-major shareholder (DGA) of a BV must receive a minimum salary (gebruikelijk loon) of at least €56,000 (2026) or the highest salary of the most comparable employee, whichever is lower. This salary is taxed in box 1 at progressive rates. The remainder of the company's profit can be retained (taxed at corporate rate only) or distributed as dividend (taxed in box 2). The DGA rules are a critical feature of the Dutch tax system.
• Dividend withholding tax: Dutch dividend withholding tax (dividendbelasting) at 15% is withheld by the company on dividend distributions. The recipient can credit this against their box 2 tax liability — making the net box 2 rate 24.5% — 15% = 9.5% additional tax (or 31% — 15% = 16% in the higher bracket). For foreign shareholders, the 15% withholding tax is final unless reduced under a tax treaty.
• Deemed return on savings: Box 2 does not apply to savings held within a BV. Savings in a BV are subject to corporate tax on the investment returns (interest, capital gains) at 25.8%, and to box 2 upon distribution. This generally makes holding significant savings in a BV tax-inefficient compared to holding them personally in box 3.

Box 3 — Savings and Investments (Sparen en Beleggen)

• Deemed return — not actual return: The Netherlands taxes savings and investments in box 3 based on a deemed return (fictief rendement), not the actual investment return. The tax is 36% of the deemed return (2026 rate). This means the effective tax as a percentage of assets depends on the deemed return percentage.
• Three-category system (2023+): From 2023, box 3 divides assets into three categories with different deemed return percentages: bank balances (banktegoeden) — deemed return of approximately 1.03% (actual interest-like rate); other assets (overige bezittingen) — shares, bonds, second homes, crypto — deemed return of approximately 6.04%; debts (schulden) — deductible at a deemed interest rate of approximately 2.47% (2026 provisional rates). The deemed return rates are updated annually based on market data.
• Tax-free allowance (heffingvrij vermogen): The first approximately €57,000 (2026, increased annually) of net assets (assets minus debts) per person is exempt from box 3. For partners, the allowance is doubled (€114,000 combined). Above the threshold, the deemed return on the excess is taxed at 36%.
• Box 3 effective rate: For an investor with assets above the threshold invested entirely in shares (other assets at 6.04% deemed return), the effective tax rate on the asset value is: 6.04% × 36% = 2.17% of the asset value annually. For bank savings, the effective rate is lower: 1.03% × 36% = 0.37% of the savings amount. This disparity drives tax planning — many Dutch taxpayers minimise box 3 exposure by holding investments in box 2 (BV) or box 1 (eigen woning mortgage repayment).
• New system — actual return (proposed for 2027+): The Dutch government plans to transition box 3 to an actual return system from 2027 (pending legislation), following the Supreme Court ruling (Kerstarrest, December 2021) that the deemed return system violates European property rights under certain circumstances. Transitional rules will likely apply for 2023–2026. Taxpayers may request a reënspectief rechtsherstel (retrospective remedy) using a calculation method closer to actual returns for specific years.

Filing and Deadlines

• Tax year: Calendar year (1 January to 31 December).
• Filing deadline: 1 May following the tax year. Extension to 1 September is available upon request (via Mijn Belastingdienst, uitstel aanvragen). Further extension to 1 May of the following year may be granted through a tax advisor using the uitstel voor adviseurs system.
• Mijn Belastingdienst: The online portal (Mijn Belastingdienst) is the primary filing method. Pre-filled data (loon, mortgage interest, bank balances, dividend) is provided by employers, banks, and other institutions. The taxpayer reviews, adds missing items, and submits digitally. DigiD (personal digital identity) is required. Non-residents use a different portal (Mijn Belastingdienst Buitenland).
• Voorlopige aanslag (provisional assessment): Taxpayers with significant non-withheld income (box 2, box 3, self-employed) should apply for a provisional assessment to make quarterly advance payments to avoid interest charges. The provisional assessment can be requested via Mijn Belastingdienst.
• Interest on late payment (belastingrente): The Belastingdienst charges interest on late payments. The rate for individual income tax is approximately 4–6% (2026, revised semi-annually). Late filing penalties (verzuimboete) start at €68 and can escalate to €5,278 for repeat offences or intentional non-compliance.

For the 30% ruling for expatriates, see our 30% Ruling Guide →. For starting a business as a self-employed person (zzp), see our Starting a Business Guide →. For corporate tax on BV profits, see our Corporate Tax Guide →. For US citizens tax rules (FATCA, FBAR, PFIC), see our US Citizens Tax Guide →. For marriage, partnership, and divorce tax rules, see our Marriage, Partnership, and Divorce Tax Guide →. For healthcare costs and medical expenses deduction, see our Healthcare Costs and Medical Expenses Guide →. For the company car bijtelling and motor vehicle taxes, see our Motor Vehicle Tax Guide →.