Wealth taxation in the Netherlands has long been a source of frustration, especially for expats, investors, and HR leaders managing international talent. Why? Because the Dutch system has taxed assumed investment returns (so-called “deemed returns”) instead of your real financial gains.
In simple terms: even if your portfolio didn’t grow, you may still owe taxes.
But change is coming in 2025.
What’s the Issue with the Current Wealth Tax?
The Dutch tax system currently assumes that individuals earn a certain return on their savings and investments—regardless of actual performance. This system, applied via Box 3, often results in people paying more tax than they truly owe.
This has prompted multiple rulings by the Dutch Supreme Court, which stated that taxing assumed gains instead of real ones is unfair and, in some cases, unlawful.
What Can You Do in 2025?
Starting this summer, the Dutch Tax Authorities (Belastingdienst) allow taxpayers to:
- Submit evidence of their actual return if it’s lower than the deemed return.
- Request a correction for past tax years (provided you haven’t received a final assessment yet).
EMG helps clients navigate this process, from preparing financial data to liaising with the authorities. If you or your international employees may benefit, we’re here to assist.
What’s Changing in the Future?
In response to the Supreme Court rulings, the Dutch government has proposed a new law to replace deemed returns with real return taxation.
Current Status:
- The bill has passed public consultation and is under review by the Dutch Parliament.
- Despite some criticism from the Council of State, the government is moving forward.
Planned Implementation:
- The new system is scheduled to begin on 1 January 2028.
- Financial institutions and the Tax Authorities will update their infrastructure to support this transition.
What This Means for HR & Expats
For employers managing international talent, this is more than a tax detail—it’s a compliance and retention issue.
- Expats often struggle with the complexity of Dutch tax categories.
- Misunderstanding Box 3 obligations can lead to financial strain or frustration.
- HR teams must stay informed to provide correct guidance and avoid unexpected tax issues during onboarding or relocation.
How EMG Helps You Stay Ahead
At EMG, we ensure your international talent—and your HR team—are fully supported, from relocation to tax planning.
✅ We help individuals challenge unfair Box 3 assessments.
✅ We keep your business informed about evolving tax laws.
✅ We offer personal guidance and strategic support for 2025 and beyond.
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