What's Excluded from Box 3?

Key Takeaways

Your primary residence (eigen woning) is excluded from Box 3 — it is taxed in Box 1 via the eigenwoningforfait.
Business assets used in your sole proprietorship or partnership are excluded — they belong to Box 1 business income.
Pension savings in recognized plans (employer pensions, lijfrente, AOW) are excluded.
Art loaned to qualifying public museums can be exempt under specific conditions.
Green investments in approved funds get a partial exemption.
Substantial interest holdings (5%+ in a company) are Box 2, not Box 3.

Your Primary Residence (Eigen Woning)

The most significant Box 3 exclusion is your own home — the property you live in as your primary residence. This is taxed under a completely different regime in Box 1:

The property itself is subject to the eigenwoningforfait (imputed rental value), added to your Box 1 income
The mortgage interest on your primary home is deductible in Box 1
The property's value does not count toward Box 3

This applies to one property only — the one registered as your primary address (hoofdverblijf). If you own two homes and live in one, the one you live in is Box 1 and the other is Box 3.

Good to know

If you temporarily leave your home (e.g., for work abroad), it may remain classified as your primary residence for Box 1 for up to 2 years, provided certain conditions are met. After that, it shifts to Box 3.

These are also excluded from Box 3 because they belong to the Box 1 property regime:

Mortgage on your primary home — Box 1 debt, not Box 3
Home equity — not separately taxed
Savings linked to your mortgage (banksparen or spaarhypotheek) — Box 1

Business Assets (Ondernemingsvermogen)

If you are a sole proprietor (eenmanszaak) or partner in a VOF/maatschap, the assets used in your business are taxed under Box 1 business income, not Box 3:

Business bank accounts
Business inventory and equipment
Business real estate (if used primarily for the business)
Trade receivables (outstanding invoices)
Business vehicles

The key distinction is whether the asset is used for the business or is private. A computer used exclusively for your freelance work is a business asset (Box 1). A savings account that happens to be in the name of your eenmanszaak but is not needed for operations could be reclassified as Box 3.

Warning

If you operate through a BV, the BV's assets are not your personal assets — they belong to the BV and are subject to corporate income tax. Your shares in the BV may be Box 2 (if 5%+ substantial interest) or Box 3 (if less than 5%).

Substantial Interest (Aanmerkelijk Belang) — Box 2

If you own 5% or more of the shares in a company (BV or NV), those shares are taxed under Box 2, not Box 3. This includes:

Direct holdings of 5%+ in a BV
Indirect holdings through a holding company
Options that give you the right to acquire 5%+
Profit-sharing certificates (winstbewijzen) of 5%+

Only shares below the 5% threshold fall into Box 3. For most retail investors buying individual stocks on the exchange, their holdings are well below 5% of any company and thus remain in Box 3.

Pension and Retirement Savings

Most pension savings are completely excluded from Box 3:

Excluded

Employer pension (pensioen via je werkgever) — contributions are pre-tax, payouts are taxed as Box 1 income
AOW (state pension) — built up automatically, not an asset you report
Lijfrente (annuity products) — if the premiums were deducted in Box 1, the capital is not Box 3
Banksparen (bank savings for retirement) — the retirement-linked variant
Foreign pension rights — if they qualify as equivalent to Dutch pension under tax treaty rules

Not Excluded

Voluntary savings in a regular account labeled "for retirement" — this is still Box 3
Non-qualifying foreign pension — if it does not meet Dutch pension standards, it may be Box 3
Lump sum from a surrendered pension — this may trigger different tax treatment

Life Insurance and Annuities

Certain life insurance policies are excluded from Box 3:

Kapitaalverzekering eigen woning (KEW) — capital insurance linked to your mortgage (older policies, no longer available for new contracts since 2013)
Lijfrenteverzekering — annuity insurance where premiums were Box 1 deductible
Funeral insurance (uitvaartverzekering) — up to a reasonable level

Other life insurance policies, such as endowment insurance not linked to a pension or mortgage, may be Box 3 assets. The tax treatment depends on when the policy was taken out and its specific terms.

Art on Museum Loan (Kunstwerken)

Art and collectibles are generally included in Box 3. However, there is an exemption for:

Art and antiques that are on loan to a public museum (or qualifying institution) for display
The loan must be formalized and the objects must actually be on display or available for public viewing
The exemption applies for as long as the loan continues

This exemption was designed to encourage private art owners to make their collections publicly accessible rather than hiding them away.

Tip

If you own valuable art, consider lending pieces to a museum. Not only does this provide a Box 3 exemption, but many museums offer favorable loan terms including insurance, climate control, and public recognition.

Conditions for the Art Exemption

The museum or institution must be recognized under Dutch tax law
The loan must be for a minimum period (typically at least one year)
The art must be genuinely available for public display
You remain the owner — the exemption is specifically for loaned, not donated, art

Green Investments (Groene Beleggingen)

Investments in approved green funds receive a partial Box 3 exemption:

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 tax credit of 0.7% on the exempt amount in your Box 1 return
The investment must be in a fund or institution with an official "green declaration" (groenverklaring) from the government

See our dedicated article on the Green Investments Exemption for the full details.

Other Exclusions

Belongings Not Classified as Investments

The following personal items are generally not reported in Box 3:

Personal car — for daily use
Furniture and household items
Clothing and personal effects
Small electronics (phones, laptops for personal use)

Items With Special Rules

Intellectual property — if earned through personal creativity and not transferred to a business, may be exempt
Rights to future income (e.g., royalties) — complex rules depending on the nature
Beneficial interest in a trust — may trigger Box 3 or special anti-avoidance rules

Summary Table

Asset	Box 3?	Where Taxed Instead?
Primary residence	No	Box 1 (eigenwoningforfait)
Primary home mortgage	No	Box 1 (deductible)
Business assets (ZZP/VOF)	No	Box 1 (business income)
BV shares (5%+)	No	Box 2
Employer pension	No	Box 1 (when paid out)
Lijfrente	No	Box 1 (when paid out)
AOW rights	No	Box 1 (when paid out)
Green investments (up to limit)	No	Exempt + Box 1 tax credit
Art on museum loan	No	Exempt
Bank savings	Yes	Box 3
Stocks, bonds, ETFs	Yes	Box 3
Crypto	Yes	Box 3
Second home	Yes	Box 3
Rental property	Yes	Box 3

Common Mistakes

Treating all property as excluded — Only your primary residence is excluded. Second homes, rental properties, and holiday homes are Box 3.
Assuming foreign pension is excluded — It depends on whether the pension qualifies under Dutch rules or tax treaties.
Not claiming the green investment exemption — If you hold qualifying green funds, report them separately to claim the exemption.
Thinking BV shares are always Box 2 — Only if you hold 5%+. Smaller holdings are Box 3.
Assuming art is always exempt — Only art on loan to qualifying museums is exempt. Art hanging in your living room is Box 3.