Investment taxes: What you need to know

Investing in investments is a smart way to grow your wealth. But did you know that you also have to pay taxes on the profits you make on your investments? In this blog post, we explain all about the taxation of investments in the Netherlands.

buro philip van den hurk is a financial planning firm that can help you with all your questions about investing and taxes. We are happy to discuss your personal situation and advise you on the best way to structure your investments to help you minimize your tax burden.

Topics we cover

  • What types of investments are there?
  • How is tax on investments calculated?
  • What are the tax credits?
  • How can you save taxes on your investments?
  • Tips for doing your tax return

Types of investments

There are different types of investments, each with its own risk-return profile. Some common investments are:

  • Shares: Stocks are pieces of a company. You buy shares in the hope that the value of the company will rise, making a profit.
  • Bonds: Bonds are loans you give to a company or government. In exchange for your loan, you receive interest.
  • Savings accounts: Savings accounts are a safe investment, but returns are low.
  • Index funds: Index funds track a broad market index, such as the AEX. This is a way to invest in a large number of different companies.

Investment tax

The tax on investments is calculated in Box 3 of the income tax. In box 3, your assets are taxed, including your investments. The tax authorities use a notional return on your assets. You pay 31% tax on this notional return in 2023 and 34% in 2024.

Tax credits

There are several tax credits you can use to reduce your taxes on investments. The main tax credits are:

  • Savings tax credit: This tax credit is designed to compensate for low returns on savings accounts.
  • Green Investment Tax Credit: This tax credit is designed to encourage investment in sustainable investments.

Saving taxes on investments

There are several ways to save tax on your investments. Some tips:

  • Take advantage of tax credits.
  • Invest in green investments.
  • Spread your investments.
  • Donate your investments to your children.

Tips for your tax return

To make your tax return go smoothly, follow these tips:

  • Save all your documents.
  • Use appropriate forms.
  • Fill out your tax return correctly.
  • File your tax return on time.

Navigating the tax rules around investing can be complicated. Want to learn more about how to best manage your investments for tax purposes? Then contact buro philip van den hurk. We are ready to help you.