Prince Constantijn highly critical of the new plans for box 3

Prince Constantijn is highly critical of the new plans for box 3, he said on WNL op Zondag. He fears that the Netherlands will become less attractive to investors and talent from abroad. According to him, the cabinet is sending the wrong signal with this tax: as if entrepreneurs are not welcome here.

New tax system

Last week, the House of Representatives approved a new system for box 3, the tax on savings and investments. Currently, a notional return is assumed: the Tax and Customs Administration assumes that you make a certain percentage of profit, even if that is not the case in reality. In the new system, which will come into effect in 2028, the actual increase in value of a person's assets will be taken into account. For savings and investments, this means that people will pay annual tax on the growth of their assets.

On paper, this sounds fairer: those who earn more pay more. But the system also becomes more complicated. Investors must keep track of exactly how much their shares or other investments increase in value. For people with crypto or international investments, this can mean extra administration and uncertainty.

Impact on startups

Prince Constantijn, as Techleap's special envoy, is particularly interested in the impact on startups and the investment climate. According to him, countries compete with each other to attract innovative companies and investors. If rules become more complex and taxes feel heavier, entrepreneurs may be more likely to choose another country.

He points out that startups often depend on investors who are willing to take risks. If they have to pay annual tax on paper gains, even though no money has been earned yet, this could discourage investment. According to him, this could be particularly damaging in the early stages of a company.

Complex and unpredictable

The new box 3 system is also intended as an interim step. The next cabinet ultimately wants to move to a capital gains tax, whereby tax is only paid when profits are actually realized. Until then, investors will have to adapt to a transitional model that critics say is complex and unpredictable.

The discussion touches on a broader question: how can the Netherlands remain attractive for innovation and capital, while making the tax system fairer? Proponents emphasize that the current system was unfair and legally untenable. Opponents fear that the new rules will go too far and actually slow down economic growth.

The coming years will reveal the effect of the reform.