Acting Finance State Secretary to give lecture on new tax system for vacation homeowners

Outgoing State Secretary of Finance Marnix van Rij will present a lecture on the new Box-3 tax system at the Second Home Fair in MECC Maastricht on 21 January. He will elucidate to vacation home investors the implications of the new system for owners of vacation properties.

Box 3 is the tax on income from savings, stocks, bonds, and other assets, including second homes. In 2024, this tax rate is set at 36 percent, an increase from the previous year's rate of 32 percent.

Box-3 has sparked significant debate among current and potential vacation homeowners due to the introduction of a new system. People buy vacation homes either exclusively for personal use or as an investment to yield returns, or for a mix of both purposes. Changes in legislation and legal rulings since its introduction in 2017 have complicated matters.

In September 2023, Van Rij introduced the revised Box-3 system, which proposes taxing based on actual returns. In this new system, vacation homes are treated distinctly, with different tax implications for personal use and rental income. Personal use of a non-rented vacation home is taxed based on a set return, while fully rented properties are subject to capital gains tax with deductible expenses.

The new system is expected to be discussed by Parliament this summer and will take effect on January 1, 2027.

Marnix van Rij will elucidate the new Box-3 system in his lecture and answer questions from the audience. The presentation, taking place on Sunday, January 21st, at 12 p.m. during the Second Home Fair in MECC Maastricht, is free to attend with pre-registration at secondhome.nl.