Netherlands to Introduce Capital Gains Tax From 2028
Starting in 2028, hundreds of thousands more Dutch savers and investors will face a new capital gains tax under revised budget plans announced by the minority cabinet. Following negotiations with opposition parties, the government lowered the tax-free return threshold and dropped social security cuts, sparking mixed reactions across the political spectrum.
Box 3 Wealth Tax Overhaul Set for 2028
Most citizens pay income tax solely on wages or benefits under Box 1. Individuals holding significant savings, trading in equities or cryptocurrencies, or owning secondary properties are subject to Box 3 taxation, affecting roughly 2.5 million people. According to political sources speaking to NOS, the upcoming tax plan accelerates a transition to a true capital gains tax starting in 2028. This upcoming framework will yield less immediate revenue than the current system.
To offset this projected revenue gap, the cabinet plans to lower the tax-free return allowance from 1,800 euros to 1,000 euros. Consequently, smaller savers and retail investors will reach taxable thresholds much faster than under existing rules. Finance Minister Eelco Heinen is slated to outline the complete framework in an upcoming parliamentary letter.
Corporate Tax Adjustments for BVs and Director-Shareholders
The revised fiscal strategy introduces targeted incentives for owner-operators of private limited companies, known in the Netherlands as BVs. To generate short-term tax receipts, the levy on profit distributions will decrease for a four-year window, encouraging business owners to disburse retained earnings rather than hold them within corporate structures.
Concurrently, regulations for shareholder loans are tightening. Current rules allow entrepreneurs to borrow up to 500,000 euros from their own BV under various tax advantages. The cabinet’s proposal slashes this threshold to 100,000 euros, though regulations governing owner-occupied housing loans sourced from private companies remain unchanged.
Political Opposition and Parliamentary Divisions
Reactions from opposition parties remain deeply divided as the minority government seeks broad majorities for its departmental budgets. JA21 labeled the funding mechanism for the Box 3 adjustments unacceptable due to its impact on smaller investors. Meanwhile, Pro and Volt confirmed support for the Ministry of Social Security budget while remaining uncommitted on broader fiscal measures.
Pro leader Jesse Klaver indicated a willingness to continue dialogue with the cabinet. SGP parliamentary leader Stoffer stated his faction is not unreservedly enthusiastic. 50Plus leader Struijs called for a comprehensive stress test to determine the exact impact on nurses, police officers, and retirees.
Conversely, ChristenUnie acknowledged that compromise is necessary, noting that the cabinet is shifting the financial burden away from vulnerable populations and returning the polder model of negotiation to the political forefront.