Green Investments Exemption (Groene Beleggingen)

Key Takeaways

The green investments scheme (regeling groenprojecten) gives you a double tax benefit: a Box 3 exemption and a Box 1 tax credit.
Up to €71,251 per person (€142,502 for tax partners) in qualifying green investments is exempt from Box 3 (2026).
You also receive a 0.7% tax credit on the exempt amount, credited against your Box 1 income tax.
Only investments in officially approved green funds with a groenverklaring (green declaration) qualify.
The combined tax benefit can be worth several thousand euros per year — but green fund returns are typically lower than broad market funds.

How the Green Investments Exemption Works

The Netherlands offers a tax incentive for investing in environmentally friendly projects. If you invest in qualifying green funds (groene beleggingen), you receive two benefits:

Benefit 1: Box 3 Exemption

Your green investment — up to the annual maximum — is excluded from your Box 3 assets. This means no deemed return is applied and no Box 3 tax is owed on this amount.

Year	Exemption per person	Exemption for tax partners
2024	€71,251	€142,502
2025	€71,251	€142,502
2026	€71,251	€142,502

Benefit 2: Box 1 Tax Credit (Heffingskorting)

On top of the Box 3 exemption, you receive a tax credit of 0.7% of the exempt green investment amount. This is subtracted from your Box 1 income tax.

Example: If you have €71,251 in qualifying green investments:

Tax credit: €71,251 × 0.7% = €499 off your income tax

Combined Tax Benefit

For someone who would otherwise pay Box 3 tax at the investment rate:

Box 3 tax avoided: €71,251 × 6.04% × 36% = €1,549
Box 1 tax credit: €499
Total benefit: ~€2,048 per year

For someone with all savings (lower deemed return):

Box 3 tax avoided: €71,251 × 1.03% × 36% = €264
Box 1 tax credit: €499
Total benefit: ~€763 per year

Good to know

The benefit is greatest when the green investment replaces money that would otherwise be in the investment category (6.04% deemed return). If it replaces savings (1.03%), the Box 3 savings are smaller but the 0.7% tax credit still applies.

What Qualifies as a Green Investment?

Not just any "green" or "ESG" fund qualifies. The investment must be in a financial product that has received an official groenverklaring (green declaration) from the Dutch government (Rijksdienst voor Ondernemend Nederland — RVO).

Qualifying Products

Green savings and investment products are offered by most major Dutch banks:

Green savings accounts (groene spaarrekeningen) — offered by ABN AMRO, ING, Rabobank, and others
Green bonds (groene obligaties) — issued by green-certified institutions
Green investment funds (groene beleggingsfondsen) — funds that invest exclusively in approved green projects

The key requirement is that the underlying projects must have a green declaration. These typically include:

Sustainable energy projects (solar, wind)
Energy-efficient housing and buildings
Organic farming
Nature conservation
Sustainable transport
Water treatment and management

What Does NOT Qualify

General ESG or sustainable funds — even if labeled "green" or "sustainable," they must have the official groenverklaring
Individual green stocks — buying shares in Tesla or a solar panel company does not qualify
Green ETFs — most internationally listed green ETFs do not have a Dutch green declaration
Self-directed green investments — installing solar panels on your home is great but does not qualify as a groene belegging

Warning

Always verify that a product has the groenverklaring before investing for tax purposes. Your bank or fund manager should be able to confirm this. The RVO maintains a register of approved green projects.

How to Invest in Green Funds

Step 1: Choose a Green Product

Contact your Dutch bank or browse their green product offerings. Most major banks offer:

Green savings accounts — similar to regular savings but may have slightly different rates
Green certificates/bonds — fixed-income green products
Green fund participation — investment in a pool of green projects

Step 2: Open the Account or Buy the Product

The process is the same as opening any bank account or purchasing an investment product. The bank handles the green certification — you do not need to apply for anything separately.

Step 3: Report on Your Tax Return

On your annual tax return, report your green investments separately from your other Box 3 assets. The Belastingdienst has a specific section for groene beleggingen. Dutch banks typically report this data directly to the Belastingdienst, and your return may be pre-filled.

Is It Worth It? A Comparison

The main trade-off is returns. Green funds and savings accounts typically offer lower yields than broad market alternatives.

Scenario: €70,000 to Invest

Option	Expected Return	Box 3 Tax	Tax Credit	Net After Tax
Regular index fund (7% return)	€4,900	~€1,525	€0	~€3,375
Green fund (3% return)	€2,100	€0	€490	~€2,590
Green savings (1.5% return)	€1,050	€0	€490	~€1,540
Regular savings (1% return)	€700	~€260	€0	~€440

In this example, the regular index fund still produces the highest after-tax return despite the higher tax. However, the green fund offers a guaranteed tax benefit regardless of market performance, while the index fund return is uncertain.

Tip

Green investments are most attractive for risk-averse investors who would otherwise hold savings or bonds. The guaranteed tax benefit (Box 3 exemption + tax credit) can make green products competitive with low-risk alternatives. For aggressive investors targeting high returns, the tax benefit usually does not compensate for the return difference.

Tax Partner Optimization

Tax partners can each claim the full €71,251 exemption — for a combined €142,502. If one partner has less Box 3 wealth, the green investment should be allocated to the partner with the higher Box 3 base, maximizing the exemption value.

The Green Investment and Other Exemptions

The green investment exemption is in addition to (not part of) the regular heffingsvrij vermogen:

Exemption	Amount per Person (2026)
Regular tax-free allowance (heffingsvrij vermogen)	€57,000
Green investment exemption	€71,251
Combined	€128,251

For tax partners: €114,000 + €142,502 = €256,502 potentially exempt from Box 3.

Risks and Limitations

Limited Product Choice

The number of qualifying green products is relatively small compared to the broader investment market. You are limited to what Dutch banks offer with a green declaration.

Liquidity

Some green products may have lock-up periods or limited withdrawal options. Green savings accounts typically offer normal liquidity, but green bonds or certificates may be less flexible.

Return Potential

Green funds invest in specific project types, which limits diversification and may cap returns. Historical returns on Dutch green products have generally been in the 1-3% range.

Regulatory Risk

The government could change the exemption amounts, the tax credit percentage, or the qualifying criteria in future years.

Common Mistakes

Assuming any green/ESG fund qualifies — Only products with an official groenverklaring qualify. Check before investing.
Exceeding the maximum — Only the first €71,251 per person is exempt. Investing more than this does not provide additional exemption.
Not reporting separately — Green investments must be reported in the designated section of your tax return to claim the exemption and tax credit.
Ignoring the return trade-off — The tax benefit is real, but so is the opportunity cost of lower returns. Calculate the net effect for your situation.
Forgetting the tax credit — The Box 1 tax credit (0.7%) is often overlooked. Make sure to claim it on your return.