Economy

Coalition split over paper gifts as box 3 tax reform needs billions

The cabinet plans a new tax on investment gains from 2028, and a row over paper gifts shows the coalition has not agreed how to pay for it.

NLNOW newsroom

New7 Oct 2026, 14:15 1 min read

The coalition disagrees on how to pay for the overhaul of box 3, the part of Dutch income tax that covers savings and investments. The change will leave a budget gap of billions in the coming years.

The cabinet wants to bring in a wealth gains tax (vermogenswinstbelasting) on box 3 from 2028. It would be charged when assets are sold, not every year on the growth of wealth.

The dispute over paper gifts

A majority of the Tweede Kamer, the lower house of parliament, wants to cover part of the cost by tackling paper gifts (papieren schenkingen). This is a tax-friendly way to give money away that lowers inheritance tax.

The VVD says no. Parliamentary leader Brekelmans put it bluntly: "We are not going to touch this." The party will not allow changes to this system.

The CDA and D66 are more open. Both are willing to look at tackling paper gifts to help pay for the reform.

Should paper gifts be tackled to help pay for the box 3 reform?

VVD: Opposed; will not allow changes to this system
CDA: Willing to consider it
D66: Willing to consider it

It is not clear how the government will find other money if the coalition stays split. The reports do not say.

Context

Box 3: savings and investment tax

Box 3 is the part of the Dutch income tax system that taxes wealth held in savings accounts, investments, and other assets. Rather than taxing actual returns, the government assumes a standard return rate and taxes based on that, which has become controversial as assumed returns often exceed real returns. Reforming Box 3 is regularly debated because it affects how fairly wealthy Dutch residents are taxed. Official page

Tweede Kamer: lower house of parliament

The Tweede Kamer (lower house) is one of two chambers in the Dutch parliament and is where most legislative debate and voting takes place. It has 150 members elected every four years and is responsible for passing laws, approving the state budget, and holding the government accountable. Most political power and public attention focuses on the Tweede Kamer rather than the upper house. Official page

VVD: People's Party for Freedom and Democracy

The VVD is a liberal, business-friendly party that emphasizes free markets and individual freedom, typically occupying the centre-right of Dutch politics. It has been a major governing party in most recent Dutch governments and appeals to entrepreneurs, professionals, and those favoring lower taxes. The party's positions on taxation and business regulation significantly shape economic policy debates.

CDA: Christian Democratic Appeal

The CDA is a centre-right Christian democratic party combining market economics with social responsibility and traditional values. It has participated in many Dutch governments and represents a middle position between the VVD's liberalism and parties further to the left. The CDA's approach often seeks compromise and balances business interests with social concerns.