Box 3 Tax-Free Allowance (Heffingsvrij Vermogen)
How the Dutch Box 3 tax-free allowance works — current thresholds, how tax partners can double the exemption, and what happens when your wealth grows above the limit.
Key Takeaways
- Every person in the Netherlands gets a tax-free allowance (heffingsvrij vermogen) of €57,000 (2026) for Box 3.
- Tax partners get a combined allowance of €114,000 — effectively doubling the exemption.
- The allowance is subtracted from your net Box 3 assets. If your assets are below the threshold, your Box 3 tax is €0.
- The allowance amount has increased significantly over the years and is adjusted annually.
- You do not need to apply for it — it is automatically applied when you file your tax return.
How the Allowance Works
The heffingsvrij vermogen is a deduction from your Box 3 base. After adding up all your Box 3 assets and subtracting qualifying debts, you subtract the tax-free allowance. Only the amount above the allowance is subject to the deemed return calculation.
Formula: Taxable Box 3 base = Net Box 3 assets − Tax-free allowance
If the result is zero or negative, you owe no Box 3 tax.
Current Thresholds
| Year | Per Person | Tax Partners (Combined) |
|---|---|---|
| 2022 | €50,650 | €101,300 |
| 2023 | €57,000 | €114,000 |
| 2024 | €57,000 | €114,000 |
| 2025 | €57,000 | €114,000 |
| 2026 | €57,000 | €114,000 |
The allowance jumped from €50,650 to €57,000 in 2023 as part of the government's response to the Supreme Court ruling on Box 3. It has remained at €57,000 since then.
Tax Partners and the Double Allowance
If you have a fiscaal partner (tax partner), each of you gets the full €57,000 allowance — for a combined €114,000.
Who Is Your Tax Partner?
You automatically have a tax partner if you:
- Are married or in a registered partnership
- Are cohabiting and meet certain conditions (e.g., you own a home together, have a cohabitation agreement, or have a child together)
Good to know
Having a tax partner is one of the most valuable Box 3 planning tools. A single person with €114,000 in savings pays Box 3 tax on €57,000. A couple with the same €114,000 combined pays €0 — because each partner's €57,000 allowance absorbs everything.
Dividing Assets Between Partners
Tax partners can freely choose how to divide their Box 3 assets between them on their tax returns — regardless of who actually owns the assets. The only rule is that the total must equal the actual combined Box 3 wealth.
This means you can optimize the allocation to minimize your combined tax. The optimal strategy depends on whether both partners have other income (Box 1) and the composition of their Box 3 assets.
What If You're Just Above the Threshold?
The tax-free allowance has a cliff effect — there is no gradual phase-in. Once your net assets exceed €57,000, you pay tax on every euro above it.
Example: If you have €58,000 in savings:
- Taxable base: €58,000 − €57,000 = €1,000
- Deemed return: €1,000 × 1.03% = €10.30
- Tax: €10.30 × 36% = €3.71
The tax is minimal when you are just above the threshold, but it scales linearly from there.
Practical Implications
Building Savings
If your net Box 3 assets are approaching €57,000, there are a few things to consider:
- Do not avoid saving just to stay under the threshold — the tax on amounts just above €57,000 is very small
- Consider a tax partner — if you are cohabiting but not officially registered as partners, becoming a tax partner doubles your combined allowance
- Green investments can provide additional exemptions on top of the €57,000 allowance (see Green Investments Exemption)
Common Scenarios
| Situation | Allowance | Tax on €100,000 savings |
|---|---|---|
| Single, no partner | €57,000 | ~€159 |
| Tax partners, each with €50,000 | €114,000 | €0 |
| Tax partners, one with €100,000 | €114,000 | €0 |
| Tax partners, combined €200,000 | €114,000 | ~€326 |
The Allowance and the 30% Ruling
If you have the 30% ruling with the partial non-resident taxpayer status (partieel buitenlands belastingplichtige), you are exempt from Box 3 entirely. This is separate from the tax-free allowance — you simply do not owe any Box 3 tax at all, regardless of your wealth level.
Warning
The partial non-resident status under the 30% ruling is being phased out. From 2025, new 30% ruling recipients no longer get the Box 3 exemption. Existing recipients may have transitional protection. Check the latest rules for your specific situation.
Common Mistakes
- Not claiming the allowance — It is automatic when you file, but if you skip Box 3 on your return, you miss it.
- Forgetting you have a tax partner — Married couples and registered partners always have the double allowance available.
- Not optimizing the split — Tax partners should always calculate whether a 50/50 or other split minimizes their combined tax.
- Confusing with other exemptions — The heffingsvrij vermogen is separate from green investment exemptions and other Box 3 reductions.
What to Read Next
- How Box 3 Taxation Actually Works — See the full calculation including the allowance
- Strategies for Managing Box 3 Liability — Optimize beyond the basic allowance
- Green Investments Exemption — Extra exemption on top of the heffingsvrij vermogen
- Box 3 Overview — The complete picture