1. What is Tax-Free Saving? 💸

Tax-free saving does not refer to a special type of “tax-free” savings account (if only!). It refers to the exemption in Box 3, where your savings, investments, and other assets are reported. If your total assets on January 1st remain below the annually determined limit, you do not have to pay tax.

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2. How Does the Exemption in Box 3 Work? 📋

In Box 3, you pay tax on the portion of your assets that exceeds the limit set by the Tax Office. For example, if the limit is €50,000 and you have €49,000, you pay nothing. If you have €60,000, you pay tax on the €10,000 above the threshold. The tax-free savings allowance (officially called the “tax-free capital”) changes each year.

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3. Tax-Free Allowance Per Year 📅

In recent years, the tax-free capital allowance has been:

• 2021: €50,000
• 2022: €50,650
• 2023: €57,000
• 2024: €57,000
• 2025: €57,684
• 2026: €52,048

These amounts are per person. If you have a tax partner, the tax-free allowance is doubled. This means that in 2025, you do not have to pay tax if your joint assets are below €115,368.

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4. What Is Included in Your Assets? 💰

Your assets include more than just your savings. It covers:

• Savings in your bank account
• Investments, such as stocks, bonds, or mutual funds
• Cryptocurrencies, such as Bitcoin
• Lent money (e.g., a private loan)
• Vacation homes or other real estate (in addition to your primary residence)

If you own shares in a company or hold a stash of cryptocurrency, these also count as assets. That is why it is smart to create an overview of all your possessions.

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5. Does the Equity in My House Count? 🪴

If you own a home, its value is not taxed under Box 3 but under Box 1. You do not pay capital gains tax on your home’s equity, but you do pay a notional rental value (eigenwoningforfait), which increases your taxable income. A second property (e.g., a vacation home), is taxed under Box 3.

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6. How Much Tax Do You Pay Above the Exemption Limit? 📈

If your assets exceed the exemption threshold, you pay tax on the excess. The Tax Office calculates this tax based on a “fictional return”—an estimated average return on your assets. The Tax Office assumes a higher return for investments than for savings.
You pay 36% tax on the fictional return.

Example 1: Savings Only
A couple has €200,000 in savings on January 1, 2025. Their joint tax-free allowance amounts to €115,368, which means €84,632 is taxable. The Tax Office assumes a fictional return of 1.44% on savings, which amounts to €1,219.51. They pay 36% tax on that amount, which equals approximately €439.

Example 2: Investments Only
Another couple has €200,000 in investments on January 1, 2025. They are taxed on the €84,632 that exceeds the exemption limit. The Tax Office assumes a fictional return of 5.88% on investments, which amounts to €4,976. They pay 36% tax on that amount, which equals €1,791.

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7. Grassfeld: Stay in Control of Your Savings 💻

You can only save tax-free if your total savings remain below the tax-free threshold. If you want to stay on top of your savings—and have full control over other aspects of your personal finances—download the free Grassfeld app! The app helps you with budgeting, setting savings goals, and provides insight into your cash flow. Download the app now from your app store and experience the benefits!