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Box 3 Tax Reform: Council of State Tells the Dutch Cabinet to Drop the 2028 Plan. What It Means for Founders, Angel Investors and Savers

TL;DR: What happened to the box 3 tax reform?

The box 3 tax reform in the Netherlands hit a wall on 2 November 2026, when the Raad van State (Council of State) published an advice telling the cabinet to withdraw the Wet werkelijk rendement box 3, drop its planned amendment and move to one new system in one go from 2030. The Tax Administration (Belastingdienst) judged the 2028 plan unexecutable. On 3 November an extra cabinet meeting approved a revised tax plan, and the cabinet's letters of that day confirm it: the new capital gains tax in box 3 moves from 2028 to 2029 at the latest, with 2028 still possible if talks with the banks show it can work, and the planned 2027 cut to the box 3 tax-free allowance is dropped. For founders, savers and angel investors nothing changes in 2026 or 2027: today's box 3 system with its counter-evidence rule stays.

Developing story. Last updated 6 Nov 2026, 10:45 CET. The cabinet's own letters of 3 November confirm that the new box 3 system starts on 1 January 2029, or 2028 if that proves workable. MPs question the cabinet on its box 3 amendment (the novelle) on Monday 9 November, and the Tweede Kamer votes on it and the whole tax plan on 12 November (see the update below). We'll update this article after the vote.

Searches for "kabinet box 3" jumped 1,000% in the Netherlands overnight, after the Council of State's advice and the coalition's late-night deal hit the news. Here is what the advice says, what the cabinet wanted to change, how the plan treats shares in startups, and what founders and angel investors can do while The Hague decides.

What is box 3 in the Dutch tax system?

Dutch income tax has three boxes. Box 1 covers income from work and your home, box 2 covers income from a substantial interest (a stake of 5% or more in a company, such as your own BV), and box 3 covers savings and investments: bank balances, shares, bonds, funds, second homes and crypto. Box 3 doesn't tax what you actually earned. It taxes a presumed return (forfaitair rendement) on your wealth, and the Hoge Raad, the Dutch supreme court, has ruled against that system since December 2021. Today a counter-evidence rule (tegenbewijsregeling) lets you prove that your actual return was lower than the presumed one.

If you run a startup, box 3 touches you in three places: your own savings, the small stakes you hold as an angel investor in other startups, and the shares your team members buy into.

What did the Council of State advise on 2 November 2026?

The Council of State is the government's top legal adviser on new laws. Its advice W06.26.00330/III is dated 28 October and went online on 2 November. It reviews the cabinet's novelle (an amending bill) called "Novelle uitbreiding vermogenswinstbelasting box 3", and the verdict is blunt: introducing it per 2028 is "niet verantwoord", not responsible, on the information available.

The Council's main advice has three parts:

Withdraw the Wet werkelijk rendement box 3, the actual-return bill that is waiting in the Eerste Kamer (Senate).
Don't submit the novelle to the Tweede Kamer, and come back with a new bill.
Switch to one new box 3 system in one go from 2030. Until then, today's presumed-return system with the counter-evidence rule stays in 2028 and 2029.

If the cabinet sticks with the novelle anyway, the fallback advice is to start the capital gains tax for all box 3 assets only from 2030. The advice isn't binding, so the cabinet can ignore it, but it has to explain why.

Here is why the Council objects:

Haste. A switch of this size pushed through as a quick amendment leaves both chambers too little time to weigh it.
Two systems side by side. From 2028 shares would be taxed when sold, while savings and direct crypto would be taxed every year. The Council calls that split legally vulnerable: crypto held directly would fall under the annual tax, crypto held through a fund under the gains tax.
The tax office can't run it. The Belastingdienst's execution test, received on 22 October, gave a red flag on all five points it checks. Banks can't supply capital gains data for 2028, and possibly 2029, so there would be no pre-filled return and no way to check what people report.
Cost. The temporary two-track system needs 252 extra full-time staff and about €31 million on top of the planned reform.
Funding gaps. The measures meant to pay for the plan lack political support, and no alternative is on the table.

What were the cabinet's box 3 plans for 2028?

Two pieces of law are in play. Status labels follow our usual system: Adopted means law, Proposed means in a bill, Debated means no legal text yet.

Plan	What it does	Status on 3 Nov 2026
Wet werkelijk rendement box 3 (Kamerstuk 36748)	Taxes actual returns at 36% from 2028. Annual tax on value changes as the main rule; real estate and startup shares taxed only when sold. €1,800 tax-free return, losses above €500 carried forward	Proposed: adopted by the Tweede Kamer on 12 Feb 2026, on hold in the Senate
Novelle uitbreiding vermogenswinstbelasting	From 2028 all financial instruments and unlisted shares taxed when sold (about 90% of box 3 wealth). Savings, claims and direct crypto stay on the annual tax until about 2030	Proposed: sent to the Council of State on 3 Oct, not yet submitted
One-year delay	New capital gains tax starts a year later than planned, according to NOS	Debated: coalition deal reported 2 Nov, cabinet decision pending

The Senate made clear during its debate that it wouldn't pass the bill with annual taxation of unrealised gains as the main rule, so the government asked it to put the bill on hold. The cabinet's answer, set out in a letter of 29 September, was the novelle: tax most investments only when you sell them. The legislative calendar shows state secretary for finance Eelco Eerenberg as the bill's first signatory. In his urgent request to the Council he wrote that a 2028 start only works if both chambers pass both bills by December 2026.

The package also came with a funding plan, all Proposed: the top box 2 rate cut from 31% to 29.2% for 2027 to 2030, the cap on borrowing from your own company lowered from €500,000 to €100,000 in yearly steps, and for 2027 the box 3 tax-free allowance (heffingvrij vermogen) cut from €59,357 to €30,846. The tax-free return in the new system would fall from €1,800 to €1,000. The revised plan of 3 November drops the cuts to the tax-free allowance, the tax-free return and the presumed return, and pays for the delay through box 2 instead (see below).

How would the box 3 reform tax shares in startups?

This part matters most for angel investors. The bill as adopted by the Tweede Kamer gives shares in a startende onderneming (a starting company) special treatment: dividends are taxed each year, but the increase in value is taxed only when you sell. A company qualifies under article 5.17 when it meets all five tests:

It was founded no more than five years ago.
It runs only businesses started no more than five years ago.
Its annual turnover is €30 million or less.
Its shares are not traded on a regulated market.
No more than 25% of it is held by a listed company or a company with turnover above €30 million.

There is no R&D or innovation test. The catch sits in article 5.32: when the company stops qualifying, for example on its fifth birthday or when turnover passes €30 million, your shares are treated as sold at market value. You pay tax on the paper gain up to that point, and from then on the shares fall under the annual tax. For a fast-growing startup in year five, that means a tax bill on a gain you can't cash in, since shares in a private company are hard to sell.

The novelle would make that test unnecessary, because every share held in box 3, listed or not, would be taxed only when sold. If the novelle dies and the main bill survives, the five-year test returns. Remember that a stake of 5% or more, the usual position of a founder in her own company, falls under box 2, so these rules hit small angel tickets, crowdfunding stakes and employee shareholdings.

One more piece of law matters here. The start-up and scale-up tax bill sent to parliament on 15 September (Proposed) taxes employee stock options at the moment the shares are sold, on 65% of the benefit, from 1 January 2027, for companies with an RVO statement. It was meant to bring a new startup definition into box 3 too, but the cabinet left that out because it wanted "meer tijd", more time, for the box 3 decision.

What do we know so far?

Update 6 Nov, 10:45 CET: the Tweede Kamer's page for the novelle (37 053) now shows the timetable. MPs handed in their written questions on 5 November at 14:00, and the cabinet has to answer them before Monday 9 November, 10:00. That afternoon, from 16:00 to 23:00, the finance committee questions the state secretary on the novelle in a legislative meeting (wetgevingsoverleg). The vote on the novelle is on 12 November, together with the Belastingplan 2027 package. Also on 5 November, the Kamer's temporary committee on fundamental rights decided to start an advice track on the novelle, pointing to the Council of State's advice. In the tax plan debate, opposition MPs Klaver (PRO) and Dassen (Volt) tabled amendment 37 022 nr. 35 (received 4 November). Among other things it would add a 45% top rate in box 3 above about €80,578 of box 3 income from 2029, raise the top box 2 rate to 33% and cut the cap on loans from your own BV to €17,500. It is an opposition proposal (Proposed), not the cabinet's plan. Our Belastingplan 2027 guide for BV owners covers its box 2 side.

Update 5 Nov, 07:45 CET: we have now read the cabinet's own letters of 3 November, the letter from finance minister Eelco Heinen and state secretary Eelco Eerenberg and Eerenberg’s letter on the novelle. They confirm the reports below and add the timetable (all Proposed):

The novelle "Uitbreiding vermogenswinstbelasting box 3" (Kamerstuk 37 053) went to the Tweede Kamer on 3 November. The cabinet keeps the actual-return bill and amends it, so it did not follow the Council of State's advice to withdraw both.
The new box 3 system, including the novelle, starts on 1 January 2029, unless the coming weeks show that a responsible start on 1 January 2028 is possible.
The timetable in Eerenberg's letter: in 2027 and 2028 today's presumed return with the counter-evidence rule stays; from 2029 a capital gains tax covers most box 3 wealth and an annual tax on value changes (vermogensaanwasbelasting) covers the rest; from 2030 a full capital gains tax applies to everything, through a separate bill still to come.
The cuts to the tax-free allowance, the tax-free return and the presumed return "zal worden geschrapt" (will be scrapped), and the lower box 2 rate replaces them as funding.
On 4 November the Tweede Kamer held the first round of the tax plan debate, from 15:30 to 23:00. It continues with the government's answers on 10 November, and the vote is on 12 November. By the morning of 5 November no outcome or adopted amendments had been reported.

Update 3 Nov, 22:30 CET: the cabinet met for an extra ministerraad on 3 November and approved a revised Belastingplan 2027, which it sent to the Tweede Kamer the same day. NOS and Accountancy Vanmorgen report the box 3 parts (Proposed):

The new capital gains tax (vermogenswinstbelasting) moves from 2028 to 2029 at the latest. The cabinet keeps 2028 open "als dat haalbaar is", if talks with the banks show it can be done. That is still a year earlier than the Council of State's 2030.
The planned cuts to the box 3 tax-free allowance, the tax-free return and the presumed return are dropped, according to Accountancy Vanmorgen.
To cover part of the cost, the low box 2 rate falls temporarily from 24.5% to 23.5% and the top box 2 rate from 31% to 29%, for 2027 to 2030, in the hope that director-shareholders pay out more dividend from their BV. The cap on borrowing from your own company still falls from €500,000 to €100,000 in five steps from 2027.
The minority cabinet of D66, VVD and CDA doesn't have a majority for the tax plan yet. The cabinet's own letters, which we read on 5 November, confirm these points (see the update above).

28 October: the Council of State adopts its advice on the novelle.
2 November: the advice is published. According to Accountant.nl, Eerenberg said he takes the criticism seriously and PM Rob Jetten said the cabinet is looking at the best moments to introduce it.
2 November, evening: NOS reports that coalition parties D66, VVD and CDA agreed among themselves on the tax plan and box 3, with the new capital gains tax delayed by one year according to insiders. That falls short of the Council's 2030 advice, and the coalition doesn't yet have a majority for the tax plan.
3 November: an extra cabinet meeting (ministerraad) approves the revised tax plan: the new box 3 system moves to 2029 at the latest, 2028 only if feasible, and the box 2 rates drop temporarily to cover part of the cost.
4 November: first round of the tax plan debate; Klaver and Dassen table amendment nr. 35 with a 45% top rate in box 3 from 2029.
5 November: MPs hand in written questions on the novelle; the fundamental-rights committee starts an advice track.
9 November (planned): legislative meeting on the novelle, 16:00 to 23:00.
12 November (planned): Tweede Kamer vote on the novelle and the Belastingplan 2027 package.

What we don't know yet

Whether the new system starts in 2028 or 2029: the cabinet now says 2029 at the latest, and 2028 depends on talks with the banks.
How the cabinet answers the Council of State's objection to two tax systems side by side: its 2029 plan still taxes most wealth on sale and the rest every year.
What happens to the startup-share rule and its five-year test under the new plan.
The final 2027 tax-free allowance and presumed return rate, now that the proposed cuts are dropped.
How the Tweede Kamer votes on 12 November, and whether the Senate (Eerste Kamer) votes on the novelle before the end of December.
Whether the Klaver and Dassen amendment, with its 45% top rate in box 3 from 2029, finds a majority.

What happens next in parliament?

The Ministry of Finance planned the tax plan debate in three steps. The Tweede Kamer debated the Belastingplan 2027 package on Wednesday 4 November from 15:30 to 23:00, the government answers on Tuesday 10 November, and the Kamer votes on Thursday 12 November. The box 3 novelle gets its own legislative meeting on Monday 9 November from 16:00 to 23:00 and is voted on the same day as the package. The cabinet sent its changes to the Tweede Kamer on 3 November. NOS reported earlier that the Belastingdienst needs all income tax changes by 20 November to get the 2027 provisional assessments out in December.

The money is large. In March, Eerenberg wrote that staying with today's system would cost about €2.4 billion a year in lost revenue, which is why every delay comes with a fight over funding. We covered the rest of the Dutch 2027 tax plan, from the self-employed deduction to VAT, in our Budget 2027 guide for freelancers and solo founders.

What does the box 3 delay mean for founders and angel investors?

Nothing in your 2026 or 2027 box 3 bill changes because of this advice. Today's system with presumed returns stays, and under the cabinet's revised plan the new one starts in 2029 at the latest, or 2028 if the banks can deliver the data. If you hold your company through a BV, watch the proposed lower box 2 rates for 2027 to 2030: they change the sums on paying yourself dividend, and the proposed cap on loans from your own BV falls to €100,000 by 2031. We worked out both in Belastingplan 2027: the box 2 cut and the new BV loan cap. Use the extra time to get your records in order. Next steps:

Keep a record of your actual returns. Interest, dividends, rent and value changes, per year. You need them for the counter-evidence rule today and for any new system later. Our guide to tax essentials for startup founders in Europe covers the wider picture.
Log every startup stake. Purchase price, date, the company's founding date and its turnover. Under the bill's startup-share rule, those five facts decide when you pay tax and how much.
Know which box your shares sit in. Stakes of 5% or more in your own BV are box 2. Small tickets in other startups, crowdfunding shares and staff shareholdings are box 3. Our piece on fair equity splits explains how founder stakes are set up.
Plan staff equity with the 2027 options bill in mind. If you want to give your first employees a stake, the proposed option rules start before any box 3 change. If you plan to raise from angels later, our guide to angel investors who back women shows where to find them.
Follow the 12 November vote. The cabinet's 3 November letters set the start year at 2029 at the latest, but parliament still has to agree, and amendments can change the rates. We will update this article after the vote.
Check your provisional assessment in December. If the 2027 numbers change late, the first bill can be off, and you can ask the Belastingdienst to adjust it.

Running a business in the Netherlands on top of this? Read our guides to registering a business in the Netherlands, the Dutch minimum wage for 2027 and the consultation results on the Dutch freelancer law.

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FAQ: box 3 tax reform

Is the box 3 tax reform cancelled?

No. On 2 November 2026 the Council of State advised the cabinet to withdraw the actual-return bill and start one new system from 2030. On 3 November the cabinet chose a delay instead: under the amendment (novelle) it sent to parliament that day, the new capital gains tax starts on 1 January 2029, or 2028 if that proves workable. Parliament still has to vote.

When does the new box 3 system start?

The plan was 1 January 2028. The Council of State advises 2030. The cabinet's revised plan of 3 November says 1 January 2029, and 2028 only if the coming weeks show it can be done responsibly. A full capital gains tax for all box 3 assets would follow in 2030 through a separate bill. Parliament still has to vote.

What is the planned box 3 tax rate on actual returns?

36%, under article 2.13 of the Wet werkelijk rendement box 3 as adopted by the Tweede Kamer, with a tax-free return of €1,800 a year.

How are startup shares taxed in the new box 3?

Under the bill, shares in a company younger than five years, with turnover of €30 million or less and not listed, are taxed only when you sell. When the company stops qualifying, the shares count as sold at market value.

Does box 3 apply to my own startup shares?

Only if you hold less than 5%. A stake of that size is a substantial interest and falls under box 2. Box 3 covers smaller stakes, such as angel tickets and crowdfunding shares.

What happens to box 3 in 2027?

Today's system with presumed returns and the counter-evidence rule continues. The cabinet had proposed cutting the tax-free allowance to €30,846 for 2027, but its revised plan of 3 November drops that cut, as the cabinet's letter of that day confirms. The final 2027 figures depend on the vote in parliament.