If you own a primary residence in 2025 which has a WOZ value exceeding € 1,330,000 (2024: € 1,310,000), a higher deemed income of 2.35% will be applied to the value above this amount. This is the so-called “villa tax.” This villa tax may be in conflict with European law.

Please note: The Amsterdam Court has recently rejected the taxpayer’s objection against the villa tax. It is currently unclear whether an appeal in cassation will be filed.

Tip! If you receive a final income tax assessment that includes a primary residence which value exceeds € 1,330,000, we advise you to file an objection promptly! The objection must be received by the Tax Authorities within six weeks of the date of the assessment.

In 2001, the rules regarding mortgage interest tax deduction were tightened. Since then, a maximum period of thirty years could be applied for the mortgage interest tax deductions concerning loans taken out for the purchase of improvement of the primary residence. For some homeowners, the possibility to take into account the mortgage interest payments as a tax deductions will expire as of 2031, which may lead to higher net monthly costs.
This 30-year period also applies to original mortgages taken out before 2001 that were refinanced after 2001. Therefore it is possible that, as of 2031, only a part of the mortgage interest will still be eligible for deduction.

Tip! Did you already have a mortgage on your primary residence before 2001? Assess whether you will still qualify for the mortgage interest deduction as of 2031. If not, you may be able to take timely measures to compensate for this financial disadvantage.

Note! As of 2031, you, as the taxpayer, must demonstrate that you are still entitled to the mortgage interest tax deduction. Therefore, make sure you have a clear overview of the history and development of your mortgage loans well in advance.

A loss in box 2 can be offset against positive income in box 2 from the previous year or in the six years following the loss year. When box 2-ownership is terminated with a loss, it is generally not possible to offset the loss against any dividend payments. At the earliest, in the second year in which there is no longer any box 2-ownership, you can, upon request, convert the box 2 loss into a so-called “tax credit.” This tax credit can be offset against the income tax you owe in box 1.

Tip! The tax credit is optimally utilized only if there is sufficient income tax owed in box 1. It would be a waste if tax credits are lost as a result. It is also possible to apply for the tax credit partially and defer part of it to the future (up to a maximum of six years).

January 1st is the reference date for the taxation of your box 3 assets. If the value of your assets exceeds the tax-free threshold, you will be liable for box 3 tax. Depending on the amount and compilation of your assets, it is possible to limit or avoid box 3 taxation. You can consider reducing your assets by making a gift or depositing a life annuity pension before the end of this year.

Tip! Are there any debts that you can pay off or reduce by selling of assets in box 3 with a low return on investments? This could result in a net benefit, as ‘other assets’ (such as shares) are taxed at a higher rate than the deduction you can claim for the debts.

Tip! You can reduce your assets by transferring them to (your) B.V. (private limited company). For example, by transferring investments to a B.V. before the end of the year, the assets in box 3 will be reduced, and the tax burden on your total box 3 assets will decrease. However, there are specific conditions that apply, and we refer you to our tip below regarding Box hopping: reference date arbitrage’. Whether this is the best option for you depends on the expected return and the type of assets. Want to know more about the possibilities? Contact your HBK advisor.

Under the current box 3 system for taxation on assets, there are three different categories, each with its own deemed return of investment percentage (2025): bank and savings accounts (preliminary: 1.44%), other assets (5.88%), and debts (preliminary: 2.62%). The definitive deemed return of investment percentages for bank, savings and deposit accounts and for debts for tax year 2025 will only be announced at the beginning of 2026.

For 2026, the deemed return of investment for the category ‘other assets’ will be 6%. The other deemed return rates for 2026 will only be announced at the beginning of 2027 (!). The tax-free threshold amount for assets for 2026 amounts to € 59,357, or € 118,714 in case of fiscal partners (2025: € 57,684 and € 115,368).

The composition of assets on January 1st plays a part in the taxation. Because each category has its own deemed return, it can be advantageous from a tax perspective to ensure that the composition of assets is changed before the reference date. The legislator wants to prevent abuse of this and has included the so-called reference date arbitrage (“peildatumarbitrage”) in the law. With this, the legislator aims to prevent assets in box 3 from being temporarily converted to another category to reduce the amount of taxes due.

Avoid temporary movement of assets between box 3 (income from savings and investments) and box 1 (employment and home ownership) and/or box 2 (income from substantial interest). An asset that is part of box 1 or 2 for a period of no more than three consecutive months (and both before and after is part of your box 3) is also taken into account as a box 3 asset, if during this period there is a reference date for box 3 taxation. Unless you can demonstrate that you had businesslike reasons. For box 3 assets allocated to a tax-exempt investment institution (“vbi”) or a foreign investment entity in which you have a substantial share interest, a reference period of eighteen months needs to be taken into account.

Since the so-called ‘Kerstarrest’ of December 2021, there has been much debate regarding the taxation of assets in box 3. On June 6, 2024, the Dutch Supreme Court decided that the deemed calculation of returns for 2017 through 2023 is still discriminatory, and that taxation must be based on the actual returns achieved.

As a result, on July 8, 2025, the rebuttal scheme provision box 3 (“Wet tegenbewijsregeling box 3”) came into effect, replacing the previous recovery act box 3 (“Wet rechtsherstel box 3”). Until the introduction of the new box 3 system (likely from January 1, 2028), taxpayers may demonstrate that their actual return on investments was lower than the deemed return on investments. In that case, the taxation on assets will take place based on this lower actual return on investments.

If the actual return on investments is higher, the deemed return will continue to apply. Each year you may choose the method that is most advantageous for you. Please note that the choice between deemed or actual return applies to your entire box 3 assets, and not per type of asset.

Note! The rebuttal scheme provision applies to every tax payer who received a tax assessment after the ‘Kerstarrest’ of December 24, 2021, or if an objection or appeal for an assessment is still possible. You may also submit a request for a voluntary adjustment within five years from the date on the assessment. Submitting the “Actual Return Statement” form will be regarded as such a request. From June 2025 onwards, the Dutch Tax Authorities sends letters stating that a tax payer could inform the Dutch Tax Authorities about the actual return. You may receive this letter as late as 2028. These letters will be sent to you personally. If you would like us to assist you, please forward the received letters to us. We would be happy to assist you.

Note! If you receive a definitive assessment Dutch income taxes and you have box 3 assets, we advise you to review, within the six-week objection period, whether your actual return on investments is lower than the deemed return. If that is the case we advise you to file an objection within this six-week period to preserve your rights to the rebuttal scheme act.

Tip! Start gathering your actual income, expenses, and changes in value related to your box 3 assets. This will make it easier to calculate the actual return and may, in some cases, result in significant tax savings.

In box 3, you can create an additional exemption by investing (a part of) your wealth in a so called green investment fund. In 2025, the tax exemption amounts to € 26,715. This amount can double if you have a fiscal partner (€ 53,430). Additionally, for a green investment fund, you receive an additional tax credit up to a maximum of 0.1% for partners of the exempted amount.

Note! This additional exemption was originally scheduled to be abolished in 2027. However, the 2026 Tax Plan proposes to postpone the abolition until 2028. For 2027, only a reduced exemption of € 200 will apply.

Have you had strongly fluctuating income from employment and home (box 1)? If so, you may be eligible for a tax refund.you may be eligible for a tax refund. By averaging your income and spreading it evenly over three years, you calculate the average amount of taxes due over three consecutive years (for example, 2022–2024). You can only be entitled to a refund if the calculated refund amount exceeds € 545. Please note that you can only include each year once in an income averaging request.

Note! The income averaging scheme has been abolished as per 2023, so 2022–2024 is the last period for which this ruling is possible. Requests can still be submitted up to three years after the final assessment.

In case of (partial) business succession and estate planning, it may be interesting for tax purposes to gift (part of) your self-employed business or a package of shares in your private limited company (B.V.) to your future heirs or the intended business successor. The inheritance tax law provides a number of facilities for this – under certain conditions – including a conditional one. These business succession facilities (BOR) can also apply in the event of death.

The corporate structure must meet specific requirements. Indirect interests of less than 5% are not covered by the BOR. From 2026 onwards, the definition of preferred shares (“preferente aandelen”) will be adjusted, meaning that many common situations will no longer qualify for this ruling.

Since January 1, 2025, when gifting (part of) your business or shares, there is no longer a requirement that the recipient must have been employed for a certain period. However, the transferred business or enterprise must be continued for at least three years, and in the case of shares, you must remain the owner of the shares for at least three years (continuation requirement). If this requirement is not met the Tax Authorities will recalculate the inheritance or gift tax.

It is possible that the BOR will be further restricted in the near future. Is this business succession facility interesting for you and your heirs? In that case we advise you not to wait too long.

Since 2023, a taxpayer with low income no longer receives a tax refund based on the general tax credit, the labor tax credit, and the income-dependent combination credit (partially). Partners with no income often cannot fully utilize all tax credits on their own. In some cases, this can be avoided by for example allocation of dividend income to the partner with no income. This is convenient because with this additional income, it is possible to make better use of the tax credits and combined the fiscal partners will pay less taxes.

Additionally, the partner with little or no personal income can utilize its tax credits entitlements by allocating the entire or partial assets of the partner to its Dutch income tax return.

If you plan to sell your own home soon, it could be beneficial from a tax perspective to postpone the transfer of ownership until after the new year, provided you have not yet bought another home for which you intend to use the income from the sale of your current home. If you sell your home and the formal transfer at the notary takes place before the end of this year, the revenues will be in your bank account and therefore part of your box 3 assets for taxation in the following year. In case you postpone the formal transfer of your home at the notary until next year, the revenues will not be part of your box 3 assets for tax purposes as of January 1, 2026.

If you want to buy a home and pay a significant amount with your own capital, the reverse is applicable. In that case, the value of your assets in box 3 will be reduced before January 1. As a result it could be more beneficial to take care that the formal transfer of the home at the notary takes place before January 1, 2026.

Tip! Wait to transfer ownership until after January 1 if you do not own another home to avoid a higher basis in box 3.

Tip! If you are between the ages of 18 and 35, you may be able to use the first-time homebuyer exemption for transfer tax, under certain conditions, when purchasing your first home. In that case you will not owe any transfer tax on the purchase. The exemption applies to homes with a maximum value of € 525,000 in 2025 or € 555,000 in 2026. Consider whether acting now or delaying is the best option. If the value of your home is between € 525,000 and € 555,000, you could save 2% in transfer tax by postponing the purchase to 2026.

In 2025, the statutory tax interest rate amounts to 9% for corporate income tax and 6.5% for personal income tax. A collective objection procedure against the level of this interest is currently in dispute with the Dutch court, which taxpayers can join. Please pay any outstanding tax liabilities on time and consider requesting (and paying) provisional assessments to limit tax interest the Tax Authorities will calculate.

Tip! If you want to join the collective objection procedure, submit your objection within six weeks of receiving your final assessment.

An unequal share in a community of property regime is an agreement between two partners in which the property is not shared equally (not 50/50). In case of an unequal shared community of property, property can be handed over to the partner in a favorable tax manor. The Tax plan 2026 proposes that, in the case of unequal share between partners – any proportion other than 50/50 – the portion exceeding 50% will be subject to inheritance or gift tax. This also applies in the case of a final or periodic settlement clause in which assets or income are settled based on unequal entitlement to that property or income.

Note! For certain situations transitional law has been incorporated. This measure does not apply to prenuptial agreements that already include an unequal share in a community of property or unequal settlement clause agreed upon before September 16, 2025 and a transitional law is applicable. However, if you amend your prenuptial agreement after this date, this transitional law will no longer be applicable and the new rules will apply from January 1, 2026 and onwards. Consult your advisor first to understand the potential consequences of amending your prenuptial agreement.

As of July 1, 2026, under the Dutch Act on Management and Supervision of Legal Entities (Wet Bestuur en Toezicht Rechtspersonen, WBTR), no director or supervisory board member of a foundation or association may cast a majority of the votes. If the articles of association of the foundation or association still contain such a provision, they must be amended before this date. Without an amendment, multiple voting rights will automatically lapse. In case the voting still take place using the multiple voting rights, these decisions are invalid, with all potential legal consequences and personal risks.

Tip! Review your articles of association and board agreements in a timely manner and amend them where necessary.