The Dutch government’s new Box 3 (wealth tax box) system has triggered a gold rush toward the Beleggings BV (investment private limited company). With the tax rate on actual investment returns set at 36% starting in 2026, suddenly paying 20% corporate tax (VPB) inside a BV sounds like a no-brainer. Online forums are buzzing with investors convinced they’ve found the cheat code to outsmart the Belastingdienst (Tax Authority). But beneath the surface, a fierce debate rages about whether this strategy is a genuine loophole or a financial trap waiting to snap shut on middle-class investors.
The DGA Salary Myth That Could Bankrupt You
The controversy exploded when one Reddit user calculated that a Beleggings BV requires a Directeur-Grootaandeelhouder (Director-Major Shareholder, DGA) to pay themselves at least €55,000 in salary annually. Their math was stark: to generate that kind of return passively, you’d need nearly €1 million in starting capital just to break even on the salary obligation. For optimistic souls, maybe €500,000 could work. The post sent tremors through the community, had the government quietly killed the Beleggings BV before it even took off?
The response was immediate and brutal. Multiple fiscalists and experienced investors corrected the premise: if you perform no actual work in your BV, you are not required to pay yourself a salary. The confusion stems from article 12A of the Wet loonbelasting (Wage Tax Act), which mandates a “gebruikelijk loon” (customary salary) for DGAs, but only if you’re actively employed by your own company.
Here’s where it gets legally murky. The Belastingdienst considers pure portfolio management, buying ETFs, holding stocks, collecting dividends, as passive investment, not labor. But if you’re day-trading, analyzing crypto, or actively managing real estate deals, you cross into “work” territory. That seemingly small distinction is the difference between paying zero salary and being hit with a €58,000 annual obligation (the 2026 minimum). Many investors rushing to set up Beleggings BVs don’t realize they’re walking a tightrope over this definition.
When the Math Actually Works (And When It Doesn’t)
Let’s cut through the hype with real numbers. The Box 3 system taxes your actual returns at 36%. Inside a BV, you pay 19% corporate tax on profits up to €200,000, then 25.8% above that. On the surface, that’s a massive saving. But there’s a catch that destroys the advantage for smaller portfolios: double taxation.
When you want to spend that money privately, you must pay 25% dividend tax on top of the corporate tax. The combined effective tax rate only drops below 36% when your returns exceed roughly €110,000 per year. Below that threshold, you’re paying more tax, not less.
The strategy only becomes attractive with very large capital, think €2 million plus, where the majority of your returns stay inside the BV compounding at the lower 20% tax rate. For the average investor with €100,000 to €500,000, the Beleggings BV is a mathematical disaster. You’re paying accountant fees, setup costs, and dealing with compliance headaches for a tax increase.
This explains why most successful Beleggings BVs are legacy structures, originally real businesses that accumulated surplus capital. The owner was already drawing a DGA salary for actual work, so adding passive investments on top cost nothing extra. Starting a BV purely to invest is a different beast entirely.
The Passive vs Active Trap: A Grey Area That Could Cost You
The Belastingdienst hasn’t published clear guidelines on what constitutes “work” in a Beleggings BV, creating a dangerous grey area. One commenter noted that even active trading might still be considered passive asset management if you’re not providing services to third parties. But this is interpretation, not law.
The risk is asymmetric. If you underpay yourself and the tax authorities disagree with your “passive” classification, you face retroactive salary assessments, penalties, and interest. The burden of proof sits entirely on you. For someone quitting their job to day-trade full-time through a BV, this is a fiscal minefield.
The new Box 3 rules taxing unrealized gains amplify the risk. If your portfolio surges in value but you can’t take money out to pay the personal tax bill, you might be forced to liquidate BV assets at the worst possible time. The structure designed to defer taxes could instead create a cash-flow crisis.
The Political Firestorm Behind the Strategy
The Beleggings BV debate is more than technical tax optimization, it’s a proxy war over the Netherlands’ investment climate. The new Box 3 system emerged after the Hoge Raad (Supreme Court) struck down the old fictional-return system. The government’s replacement taxes actual gains at 36%, one of the highest rates globally, with no carry-back provisions for losses.
Critics argue this creates a system where the government shares in your profits but not your risks. As one commenter put it: “We are the only country with such a harsh implementation, where the risk lies entirely with the investor and the government only reaps the benefits.” The policy is estimated to generate just a few billion euros annually, small change in the national budget, but enough to trigger significant capital flight.
The frustration is palpable among middle-class investors who spent decades building portfolios for retirement or a first home. Many feel targeted by a policy that hits precisely those who followed the government’s old advice to “save more and invest.” Wealthy individuals with complex international structures or illiquid assets can avoid the tax, while the upper-middle class gets squeezed. The result is a growing rebellion, with some investors considering emigration.
The Real Costs Beyond Tax Rates
Setting up a Beleggings BV costs around €500 to €1,500 in notary and registration fees. Annual compliance, accountant, tax returns, runs another €1,500 to €3,000. For a €200,000 portfolio generating 7% returns, that’s €14,000 in gains. If you need to pay a DGA salary, you lose €58,000 before you even start.
Even without salary, the administrative burden is real. You must maintain proper bookkeeping, hold shareholder meetings, and file corporate tax returns. The BV must have a business plan that justifies its existence. For pure passive investing, this is hard to defend if the Belastingdienst comes knocking.
The opportunity cost matters too. Money trapped in a BV can’t be used for personal mortgage payments or emergencies without triggering dividend tax. Young investors saving for a house are better off with a regular brokerage account, despite the 36% tax. The liquidity and flexibility are worth the cost.
Who Should Actually Consider a Beleggings BV
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You already have a profitable business in a BV with surplus cash. If you’re already paying a DGA salary for real work, investing retained earnings at 20% tax is a no-brainer. This is the “legacy BV” scenario most success stories come from.
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You have substantial capital (€2M+) and can wait decades. The power of compounding at lower tax rates only overcomes the dividend tax drag with large numbers and long time horizons. If you’re building generational wealth and don’t need income, it can work.
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You have irregular, lumpy income. A BV lets you smooth income across years, taking dividends in low-income years to minimize overall tax burden. This requires careful planning and a good accountant.
For everyone else, especially expats with €50,000 to €500,000 in index funds, the Beleggings BV is likely a expensive mistake. The new Box 3 rules are harsh, but they’re still simpler and cheaper than corporate complexity.
The Bottom Line: A Strategy for the Wealthy, Not the Wealth-Building
The Beleggings BV is not dead, but it’s been mischaracterized as a mass-market solution. It’s a niche tool for specific situations, not a universal loophole. The DGA salary myth, while technically incorrect for pure passive investors, serves as a useful warning: the compliance risks and hidden costs make it impractical for most.
The real crisis isn’t the Beleggings BV itself, but the political decision to implement one of the world’s highest investment taxes while claiming to improve the investment climate. Until that contradiction is resolved, Dutch investors will keep hunting for loopholes, real or imagined.
If you’re considering this route, talk to a fiscalist before setting up a BV. And if you’re an average investor, the best strategy might be the simplest: keep investing in your personal account, max out your annual vrijstelling (exemption) of €59,357 per person, and join the political debate about whether 36% is really the right number. Sometimes the best tax planning is changing the policy itself.
