Vastgoed Belang criticizes proposed Dutch Box 3 tax increase

The Dutch cabinet intends to increase the forfaitary return for real estate in 2027 to 7.87 percent. This follows a planned 1.5 percentage point increase alongside a previously expected 0.37 percentage point rise.

Vastgoed Belang, a trade association representing real estate interests, has labeled this increase ‘unnecessary and unacceptable’. The organization estimates that private landlords will face a 31.2 percent increase in Box 3 taxes in 2027. This measure is intended to provide coverage for the accelerated introduction of a capital gains tax for all investment categories starting in 2028.

Niek Verra of Vastgoed Belang noted that for a growing group of private landlords, the tax burden is already higher than actual rental income, which may force many to sell their rental properties. While the association supports the eventual transition to taxing actual returns via capital gains tax, they warn that the interim coverage measure places an excessive burden on landlords.