As part of the new calculation method for Box 3 taxation in the Netherlands, which we discussed in our earlier blog Box 3 Wealth Tax Update: Introducing the OWR Form (Werkelijk Rendement), the Dutch tax authorities are adding another layer to what counts as “real” income.
In December 2024, the Supreme Court ruled that the private use of a second home can indeed form part of a taxpayer’s Box 3 return. Owning a property that you can use yourself, the Court reasoned, provides an economic benefit. However, since the legislator had not yet specified how to measure that benefit, taxpayers were not required to include it in their 2024 and 2025 tax returns yet. That will change as of 1 January 2026.
The new rule
From 2026 onwards, anyone who owns a second home will need to include a notional benefit for private use when opting for the new “actual return on investment” method (werkelijk rendement) for calculating their Box 3 taxes.
This benefit is based on the economic rental value, the rent that could reasonably be charged under normal market conditions.
To “simplify” things, the legislator has introduced a fixed reference rate:
5.06% of the WOZ value per year, calculated for the period in which the property is at the taxpayer’s disposal.
That means the property does not actually need to be used, but merely being available for personal use is enough to trigger taxation. Only periods of actual rental, renovation, construction, or damage (for example, due to fire) are excluded.
No counter-evidence allowed
Perhaps the most striking element of this rule is that no counter-evidence is permitted.
Even if a property is never used, as long as it is available, it is deemed to generate a taxable benefit.
This raises an important question: does a theoretical benefit still qualify as actual return? The courts may ultimately need to decide, as this interpretation seems to stretch the idea of “realistic taxation” quite far.
In summary
Until 2025, private use of a second home remains outside the Box 3 base (when using the new method of calculation).
From 2026, however, a notional benefit for own use will form part of the taxable return, even if no real income is earned.
Whether this approach will hold up in court remains to be seen. But one thing is clear: starting in 2026, simply owning a property that could be used for personal enjoyment may already come with a tax bill attached.
Dutchtaxadvice can assist you if you have any questions about how this development fits within the new actual return system or how it may affect your Box 3 position.
