How much tax do I pay in Box 3 if I own real estate in the Netherlands and abroad?

💰 Example: Dutch Tax Calculation (Box 3) for Expats Investing in Dubai Real Estate 2025

📊 Example: Real estate in Dubai and the Netherlands – What will you pay in Box 3 in 2025?

Your situation:
✅ €500,000 worth of property in Dubai
✅ €1,000,000 worth of property in the Netherlands
✅ You and your partner have fiscal partnership status, meaning you benefit from double the tax-free allowance.

How does Box 3 work in 2025?

Step 1: Total wealth calculation

The Dutch Tax Authorities first calculate the tax based on your total assets.
Total real estate = €1,500,000.

For real estate, the tax authorities apply a deemed return of 6.04%.
6.04% of €1,500,000 = €90,600 paper profit.

Step 2: Apply the tax-free allowance

Together, you and your partner are entitled to a combined tax-free allowance of €114,000.
You do not pay tax on this portion.

The deemed return on this exempt amount is:
6.04% of €114,000 = €6,885 (tax-free return).

This leaves:
€90,600 - €6,885 = €83,715 taxable return.

Step 3: Calculate the tax

You pay 36% tax on this taxable return.
36% of €83,715 = €30,137 Box 3 tax.

Step 4: Reduction for foreign property in Dubai

Out of the €1,500,000 total assets, €500,000 is located in Dubai.
This means 1/3 of your wealth is foreign property.

For this portion, you receive double taxation relief (because the Netherlands exempts this part under the tax treaty with the UAE).
You therefore do not pay 1/3 of the calculated Box 3 tax.

1/3 of €30,137 = €10,046 reduction.

Final result: How much tax do you actually pay?

Total Box 3 tax = €30,137
Reduction for Dubai property = €10,046
Net tax to be paid: €20,091 per year in Box 3

Let me know if you want this adapted to a specific tone, like more formal or more sales-oriented.