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Tax for capital gains. Is it applicable in the Netherlands and if so, in which situations?

Question:
 
My understanding is, that in NL there is no capital gains tax for trading shares or other securities (options, futures).
My question: are there any limitations for this regarding the number of traded securities ? With other words: is this also valid for private daytraders trading hundred shares per day ?
 
Answer:
 
In general an individual will not have to pay tax on capital gains. So if the main residence is sold or shares are sold the profit is not taxable. This is different if the transaction(s) exceed(s) normal asset management. In that case the capital gain is treated as income from other activities or even business income.
 
Relevant are:
  • the number of transactions -> the more transactions the sooner it is assumed that activities exceed normal asset management
  • specific knowledge of the individual -> if the individual is a professional trader, the personal transactions will be seen as taxable income sooner than if the individual doesn‘t have specific knowledge or experience.
  • work which is invested in the asset -> if maintenance of a property is taken care of by an external party the activitities may be seen as normal asset management, if the owner does all the maintenance himself and even the renovations the tax authorities will argue that this is no longer normal asset management.

So it depends on the actual facts and circumstances how the capital gain is treated. Even judges do not always decide the same.

If the income is treated as income from other activities or business income then the rent you receive is also taxable. The income then falls in Box 1. The related expenses can be deducted from this income. That is different from taxation in Box 3 where income is seen as an investment. See www.expatax.nl/box-3

 

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Comments (3)
Comment by Phil on Tue, Feb 23rd, 2016 at 11:23 AM
Is this still actual?
Comment by Arjan Enneman on Tue, Feb 23rd, 2016 at 11:49 AM
Yes, this article is still actual. There is no indication either that the answer would change in the (near) future.
Comment by Jakob on Tue, Sep 20th, 2016 at 8:28 PM
I have been told from other tax-planning sources within Holland that if you don‘t have other income i.e a regular job, your investment income in box 3 will then be considered your main income and be taxed under box 1 instead, regardless of how small anumber of trades carried out! Any truth to this? Do you actually need to resort to be ex. self-employed (no matter how small the income) just to avoid this? Seems crazy!
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