Taxation of savings in the Netherlands: What you need to know

In this blog post, we discuss the taxation of savings in the Netherlands. We explain what the capital gains tax is, how it is calculated and what the tax-free allowance is. We also discuss the different brackets and rates, and give tips on how to save on tax on your savings.

What is capital gains tax?

The capital gains tax is a tax you pay on your assets. These assets include all your possessions, such as savings, investments, real estate and minus your debts. The IRS uses a notional return on your assets, on which you must then pay tax.

Tax-free wealth in 2024

In 2024, there is a tax-free capital of €50,650 for singles and €101,300 for partners. This means you pay no capital gains tax on the first €50,650 (or €101,300).

Discs and rates

The capital gains tax is levied in three brackets:

  • Step 1: 0% over the first €50,650 (singles) or €101,300 (partners)
  • Step 2: 31% on assets between €50,650 and €1,013,000 (singles) or €2,026,000 (partners)
  • Step 3: 36% on assets above €1,013,000 (singles) or €2,026,000 (partners)

Fictitious return in 2024

The capital gains tax is calculated on the notional return on your assets. This notional return is a percentage of your assets that the Tax Office uses as if you actually achieved this return. In 2024, the notional return is:

  • 1.68% on the first €128,000 (singles) or €256,000 (partners)
  • 4.99% on assets between €128,000 and €1,013,000 (singles) or €2,026,000 (partners)
  • 6.17% on assets above €1,013,000 (singles) or €2,026,000 (partners)

Options to save on tax on your savings

There are several ways to save tax on your savings:

  • Take advantage of the tax-free allowance.
  • Invest in savings accounts with higher returns.
  • Take advantage of tax deductions, such as the annuity deduction or the education deduction.
  • Donate money to your children or grandchildren.
  • Consider moving to a country with a lower tax rate.

Want to know more about savings taxation and how to optimize your tax return? Then contact buro philip van den hurk. We are happy to help you arrange your financial situation as favorably as possible.