Box 3 and the Search for Sustainable Returns

January 2026

Willemstad - A recent article published in EFFECT highlights that low-risk investing no longer guarantees capital preservation under the current Dutch box 3 tax regime. As tax rules evolve, investors are increasingly reassessing how and where they invest their capital.

From 2026 onwards, the Dutch Tax and Customs Administration will assume a notional annual return of approximately 7.8 percent on all assets that are not classified as savings, including shares, bonds, real estate, and alternative investments. Over this assumed return, a tax rate of 36 percent applies, resulting in an effective annual tax burden of around 2.8 percent on invested capital, regardless of the actual return achieved.

Although investors can opt to declare their actual return, this comes with limitations. The burden of proof lies with the investor, while costs and inflation are not taken into account. As a result, even defensive strategies may struggle to preserve purchasing power after tax.

Against this backdrop, many investors are increasingly looking beyond national borders. International diversification offers the opportunity to spread risk and access different investment environments.

Curaçao is one example of a location that offers investment opportunities outside the Dutch box 3 regime. With a stable legal framework and a growing real estate market, the island provides investors with options focused on long-term value and greater control over net returns.