Division of Box 3 Income
For residents of Delft, the division of Box 3 income offers a smart tax option to more fairly distribute the notional return on savings and investments between tax partners. This often reduces the tax burden, particularly following the 2023 Box 3 reform with separate return percentages for savings and investment assets. Local Delft residents with a second home in the historic city center can gain extra benefits from this.
What Does Box 3 Mean for Delft Residents?
Box 3 taxes savings and investments based on a notional return, not the actual return. Assets above the exemption threshold (€57,000 per person in 2024) are included, such as savings accounts, shares, vacation homes, or debts (e.g., student loans or mortgages on a pied-à-terre). In Delft, with its vibrant real estate market, this is relevant for many households.
From 2023, there are three brackets:
| Bracket (2024) | Assets | Savings portion (% return) | Investment portion (% return) |
|---|---|---|---|
| 1 | €0 - €57,000 | 0.36% | 6.04% |
| 2 | €57,001 - €200,000 | 0.36% | 6.04% |
| 3 | Above €200,000 | 1.44% | 6.17% |
Debts are deducted. The return is taxed at 32% (2024). More on the link with marriage? See our article on marriage and taxes.
When Are You Tax Partners in Delft?
You are tax partners if married, in a registered partnership, or cohabiting with a notarial deed and joint tax return (Article 1.6 Income Tax Act 2001). In Delft, this is common among young couples around the TU.
- Automatically upon marriage or partnership.
- Cohabiting partners: declaration before January 1 and sharing half of income/expenses.
Only then can you divide Box 3.
Legal Rules for Division
Article 7.24 Income Tax Act 2001 allows free division with a joint return, regardless of legal ownership. Different percentages applied before 2023, but rules are the same. The Tax Authorities check; unrealistic divisions risk additional assessments (Art. 16 AWR). In disputes, contact the District Court of The Hague.
How to Apply Division in Delft
- Determine total Box 3 assets: Add up savings, investments, and debts of both partners.
- Choose division: Allocate to notional portfolios; everything to one partner is allowed.
- Calculate return per bracket: Use the Tax Authorities' tool.
- Enter in tax return: Select 'Box 3 division' online.
Example 1 from Delft: Pieter and Lisa, living on Oude Delft. Pieter: €100,000 savings (low return), Lisa: €100,000 investments (high). Without division, higher tax for Pieter; with division, they save up to €500.
Example 2: After divorce (see divorce and taxes). Adjust provisional assessment.
Rights and Obligations
Rights:
- Free choice for lowest tax.
- Refund if error (Art. 22 Income Tax Act).
- Realistic division (good faith).
- Retain proof of ownership.
- Upon divorce: revert to actual ownership in year of dissolution.
Frequently Asked Questions for Delft
Can I adjust the division after filing?
Yes, until May 1. Thereafter, by Tax Authorities within 5 years (Art. 16 AWR) for changes.
Possible without a deed for cohabitation?
No, qualify as partners via return and shared burdens.
Impact on benefits?
No, benefits (e.g., via Municipality of Delft) look at actual assets (Art. 2.27 Income Tax Act).
Upon death?
Applies until date of death; heirs follow actual assets.
Tips Specific to Delft Residents
- Calculator: Try belastingdienst.nl/simulatie-box-3.
- Save proof: Bank statements for checks.
- Asset planning: Choose limited community of property upon marriage (notary).
- Seek help: For complexity, go to Juridisch Loket Delft or tax advisor.
- Check annually: Optimize with changing assets.
In family law: Marital conditions separate ownership, but fiscal division is allowed. For advice in Delft: contact Juridisch Loket Delft or our specialists.
Approx. 1050 words, current as of 2024. Check Tax Authorities for updates.