Easy and not so easy tips for saving in tax box 3

Because of the 2017 wealth tax scale, it is advisable for everyone to use certain tips & tricks regarding the taxation of box 3.

First things first though; what are we talking about? You have to pay taxes over the interest of your wealth. This interest is fictitious and is determined by the legislator. You do not pay taxes over a part of your wealth. Up to 2017 the fictitious rate was always 4% and starting from 2017 there are different rate; the higher your wealth the higher your fictitious rate.

The scale for 2018 (reference date 1st of January 2018) per adult:

0,00% for wealth up to €30.000 (tax-free wealth)

2,65% for wealth between €30.000 and €100.000

4,52% for wealth between €100.000 and 1 million

5,38% for wealth above 1 million

Furthermore, you have to take into consideration that there are various supplements besides the income tax. These also work with wealth limits regarding your right for the supplements are dependent on it. If you are above the limit, you will not be entitled to certain supplements.

Wealth limits 2017 (reference date: 1 January 2017) supplement

Wealth limits 2018 (reference date: 1 January 2018) supplement

Easy tips

You have to pay taxes over your wealth. The Tax Authorities check your bank account balance on 1 January 2018. So if your balance is lower, you pay fewer taxes.

Tip 1: Spend money before the end of the year; buy that car, coat or trip!

Tip 2: Withdraw money before the end of the year. You are allowed €522 per person in cash.

Tip 3: Pay off some debts: small debts like your credit card, tax assessment or credit card

Tip 4: Donate money to charity or as a gift.

Tips: Easy, but pay attention

Tip 5: Pay of the mortgage of your main residence

                   Pay attention: there may be a penalty for early pay-off, check with your bank

Tip 6: Donate or gift money

Pay attention: Up to €2129, you can gift money. If you want to donate more, you will have to check the regulations and also do not gift your children that are minors.   

Tip 7: Pay ahead: health care premiums, interest, tax assessments.

                   Pay attention: You will have to keep track of this or you pay unduly

Tips: Be different, quickly

Tip 8: Sell your house after 1 January 2018. If you sell your house in December the overestimation will be included on your bank account balance for Box 3

Tip 9: Do not rent out your house: Do not rent out your house until 1 January 2018. If you do, the rented house will be included in Box 3.

Tip 10: Start a relationship: marry or have a registered partnership with someone with less wealth and increase your tax-free wealth in this manner.

Tip 11: Invest through a sustainable fund. The government has designated certain funds for tax benefits. Do take into consideration that there are maximum exemptions and the wealth will be included for supplements you will have to be quick about this though. These are the designated funds:

- ABN AMRO Groenbank bv

- ASN Groenprojectenfonds

- Regionaal Duurzaam 1

- Stichting Groenfonds

- Stichting NOTS RE Investments

- Triodos Groenfonds nv

- Groenwoningen Fonds