Box 3 Tax Explained - Wet Werkelijk Rendement

Background: the road to actual returns

On December 24, 2021, the Supreme Court (Hoge Raad) made a landmark ruling: the then-current Box 3 system violated property rights and the principle of equality. The system assumed taxpayers earned a high fictitious return, while reality was much lower, especially for savers.

As a result, the Tax Authority (Belastingdienst) had to provide 'rechtsherstel' (legal remedy) for the years 2017-2022. Millions of taxpayers received refunds or revised assessments.

In June 2024, the Supreme Court made another important ruling: even under the transitional system (2017-2022), individual assessment was required when actual returns were lower than fictitious returns.

View the full history of the law (2017-present)

The current system (2026)

Until a new law is in place, the bridging system applies per category. The table below is tax year 2026 and is in force now. Other assets: 6.00%. In 2025 that rate was 5.88%. Savings were 1.37% then, and 1.28% now.

Category	Fictitious return 2026	Tax (36%)
Bank savings	1.28%	0.46%
Investments (other assets)	6.00%	2.16%
Real estate	6.00%	2.16%
Debts (deductible)	2.70%	-0.97%

Wealth allowance 2026 (in force): €59,357 per person (€118,714 for fiscal partners). Only wealth above that amount is taxed. In 2025 the allowance was €57,684 per person.

Calculation example: tax year 2026

2026 situation: €200,000 fully invested (no fiscal partner). Other-assets rate 6.00%, in force.

Total wealth€200,000

Less: tax-free-€59,357

Taxable wealth€140,643

Fictitious return (6.00%)€8,439

Tax (36%)€3,038

The new law: Wet Werkelijk Rendement (target 2028)

The Lower House approved the bill, but the Senate postponed the vote and the cabinet has outlined scenarios. The proposed Wet Werkelijk Rendement would tax actual returns. Whether and when that happens is still politically open.

What counts as return

Dividends and interest payments
Unrealised capital gains on shares/ETFs (annual)
Rental income (net)
Real estate appreciation (upon sale/realisation, not annually)
Sale gains upon realisation

Compensating measures

Losses can be offset against future gains
Tax-free allowance remains
Tax rate stays at 36%
Transitional arrangements for existing positions

Liquidity issue: You may need to sell shares to pay the tax on unrealised gains, even if you didn't want to. Real estate uses a realisation basis: appreciation is only taxed upon sale.

The compounding problem

The biggest disadvantage of the new Box 3 law is the effect on compound returns. Every euro you pay in tax on unrealised gains can no longer grow.

20-year projection: €200,000 at 7% return

No tax

€773.937

Theoretical max

Box 2 BV

≈ €580.000

After exit tax

Box 3 (new)

≈ €490.000

After annual levy

* Indicative calculation. Use our calculator for your personal situation.

Calculate your situation

Impact by asset class

Savers

Limited

Interest is already a 'realised' return. At low savings rates, the tax is limited. Relatively little change compared to the current system.

Stock/ETF investors

High

Hit hardest. Annual mark-to-market taxation on price gains, even without selling. Large impact on buy-and-hold strategy.

Real estate investors

Very high

Double levy: rental income AND property value increase are taxed. Real estate is illiquid, worsening the liquidity problem.

Private pension savings

Structural

Net wealth at retirement age significantly lower due to annual levies. Longer horizons are proportionally harder hit.

Legal uncertainty: the law may still change

Note: Since June–September 2026 the bill is politically stuck: Senate vote postponed, no Budget Day amendment, and four cabinet scenarios (including paths toward capital gains tax). 2028 is not a hard start date. See the status update.

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