Last week, we published a blog about an update on Box 3. This week, we will address the question of what “actual return” really means.
The court ruled that the Box 3 system has been in conflict with European law since 2017, as taxpayers often paid more than their actual return. To remedy this, the counter-evidence scheme was introduced, which allows taxpayers, as of July 2025, to report the return they actually achieved.

What is Actual Return?

The actual return is the amount that has actually been realized with the assets in Box 3. This does not only include income such as interest or dividends, but also changes in the value of assets, such as shares, a second home, or cryptocurrencies.

Actual vs. Deemed Return

Up until now, the Tax Authorities used a so-called deemed return: the return was calculated on the basis of fixed percentages. These percentages were meant to approximate the return on savings and investments. But based on rulings by the Supreme Court, the government is no longer allowed to levy more tax than corresponds to the actual return.
As of January 1, 2028, new legislation for Box 3 is expected. Until then, the counter-evidence scheme applies: those who can prove that their actual return on assets is lower than the deemed return may rely on it. However, Box 3 taxation can never end up higher than in the Tax Authorities’ original calculation.

Key Differences from Deemed Return

When calculating the deemed return, the asset value on January 1 is used; subsequent changes are not included. With actual return, however, the entire development of the assets during the tax year is considered. For example, if investments are bought or sold halfway through the year, these transactions do count toward the return.
In addition, when calculating the actual return, the tax-free allowance is not applied. The return is calculated on the full amount of assets, without exemption. Nor does the debt threshold apply; this means that, among other things, all interest on Box 3 debts can be fully included in the calculation.

What Falls Under Actual Return?

When calculating the actual return, all income and value changes within one calendar year are taken into account. This applies to the entire net wealth: assets and debts. Actual return includes:

• Income from assets: for example, interest received on a savings account, rental income from an investment property, or dividends from shares.
• Changes in the value of assets: such as an increase (or decrease) in the value of a second home, shares, or cryptocurrencies. These changes can also be negative – losses are also included in the calculation.

If the total result is negative, the actual return is set at €0. A negative return cannot be offset against another tax year.

Examples:

• In 2022, €2,000 in interest was received on a savings account, while the share portfolio decreased in value by €700. The actual return is therefore €1,300.
• In 2023, €400 in interest was received on a savings account, but the crypto portfolio decreased in value by €600. The total return is –€200. In this case, the actual return is €0.

Deductible and Non-Deductible Costs

In principle, costs incurred cannot be deducted when reporting actual return. Exceptions include:

• Interest on debts in Box 3: this is deductible.
• Value-enhancing investments in a second home: if an investment (partly) leads to a higher official property valuation (WOZ-value) and is correctly reported to the municipality, this amount may be deducted from the value of the property.

Choosing to Report Actual Return

Reporting actual return is not mandatory. This option is only beneficial if the actual return is lower than the deemed return. For each tax year where this applies, the Tax Authorities will send a letter from the summer of 2025 onwards. Furthermore, taxpayers may choose each year which system to apply.

What Can Novera Do for You?

The above provides a simplified explanation of how actual return is calculated. For each asset category – such as shares, real estate, savings accounts, or certain business participations – the value, the (unrealized) value increase or decrease, and the return achieved must be assessed separately. By then reviewing all categories together, it can be determined whether the total actual return is more favorable than the deemed calculation.

Because this can vary significantly per situation, it is often difficult to say in advance whether calculating on the basis of actual return will be more advantageous than using the deemed method. If you also have foreign real estate, the calculation can become even more complex. We will inform you further about this specific topic in a separate blog.

Novera will review with you the composition of your assets in the relevant tax year and clearly indicate which information we need from you for the calculation of actual return. Based on this, we will prepare the calculation and, if the actual return turns out to be more favorable, handle the entire process with the Tax Authorities on your behalf.