Lost in box 3? We explain it to you

The Dutch government is restructuring the tax system for box 3, which covers assets like savings, stocks, and secondary homes for approximately 2.5 million people. The cabinet aims to implement a capital gains tax by 2029, taxing assets only upon their sale rather than on estimated annual growth. This transition faces challenges due to bank data system limitations, making an earlier 2028 start unlikely. Currently, taxpayers are taxed on a fictitious return, though a counter-evidence regulation allows them to reclaim money if their actual gains are lower; this remains active until 2029.

Shifting to a capital gains tax model is expected to create a budgetary shortfall of approximately 18 billion euros through 2032. To cover this gap, the cabinet proposes measures such as lowering tax rates in box 2 to encourage profit distributions, tightening regulations on loans business owners can take from their own firms, and increasing the tax burden on other assets like rental income. These legislative proposals still require parliamentary approval.