How Does Box 3 Work for Entrepreneurs and Investors?
Box 3 remains one of the most discussed parts of the Dutch tax system. For entrepreneurs, investors, and directors-major shareholders (DGA’s), the Dutch wealth tax regularly raises questions. How does the current Box 3 system work? Why does the legislation keep changing? And is investing through a private limited company (BV) more tax-efficient than investing privately? In recent years, Box 3 has repeatedly been the subject of political debate and court proceedings. As a result, the Dutch tax system surrounding wealth taxation has become more complex than ever. In this article, we explain how Box 3 currently works, which changes may be introduced in the future, and the differences between private investing and investing through a BV.





