Netherlands 2026: Box 3 Taxation Tightens, 30% Ruling Phases Down

For 2026, the Netherlands continues to operate under a transitional Box 3 regime while preparing for a new system based on actual returns, currently targeted for 1 January 2028. The Box 3 tax-free allowance is €59,357 per taxpayer, while the tax rate remains 36%. The provisional deemed return rates are 1.28% for bank deposits, 6.00% for other assets and 2.70% for deductible debts.

At the same time, taxpayers may, where applicable, demonstrate that their actual return was lower than the deemed return used under the transitional system. The Dutch Supreme Court's Box 3 case law therefore remains highly relevant for taxpayers with significant investment portfolios, real estate or other assets.

The Netherlands is also moving towards a new actual-return Box 3 system, currently targeted for 1 January 2028. The bill passed the House of Representatives in February 2026, but the Senate vote has since been postponed: the cabinet is preparing a revised version of the bill for presentation around Prinsjesdag 2026, and the Senate is not expected to take the proposal up again before early 2027. The 2028 start date, and the design of the system itself, therefore remain subject to further parliamentary consideration and possible amendment.

Furthermore, for expats, 2026 is an important transition year.

The 30% ruling remains available at a maximum of 30% in 2026, but the maximum percentage is scheduled to decrease to 27% from 2027 for employees covered by the relevant rules. Transitional rules can preserve the 30% rate for certain employees who entered the scheme before 2024.

The tax-free reimbursement is also subject to the WNT salary cap, which is €262,000 for 2026. This means that, for someone qualifying for the full-year maximum, the maximum tax-free allowance is €78,600.

The partial non-resident taxpayer status has also largely been abolished. Employees who were already applying the 30% ruling in 2023 can still use the status for 2026 under transitional rules, making 2026 the final transitional year for this group.

Through Doing Business International (DBI) and our partner in the Netherlands, FirmNL (Brian Almary), we help international clients:

• Plan around the Box 3 transitional regime and prepare for the 2028 Actual Return system.
• Structure expat packages and compensation ahead of the 30% to 27% ruling change and end of partial non-resident status.
• Provide a full-service payroll offering for all employees in the Netherlands. Schedule a demo.