How is foreign property taxed in the Netherlands?

Question 1

Do I have to declare a foreign home in Box 3?

Answer

Yes. Dutch tax residents declare worldwide assets, including foreign real estate. The home is reported in Box 3 at WEV (market value) per 1 January. The tax treaty prevents double taxation: the home is fiscally allocated to the source country, but counts toward the Dutch tax-free allowance and the deemed-return rate (as of Q2 2026, source: belastingdienst.nl).

Question 2

How does the temporary Box 3 regime for 2025-2027 work?

Answer

Since the Hoge Raad ruling in December 2021 a transitional regime applies: taxpayers choose between the deemed-return system (real estate: 5.88% as of Q2 2026) and actual return. For foreign property yielding less than the deemed return you may opt for actual return via form OWR (source: belastingdienst.nl).

Question 3

Which treaty prevents double taxation between NL and Spain/UAE?

Answer

Between NL and Spain the 1971 treaty applies (renegotiated in 2025) — Spanish property is fiscally allocated to Spain (IBI + IRNR). Between NL and UAE the 2007 treaty applies — UAE levies 0% income tax on real estate, NL gives exemption with progressive reservation. Keep foreign tax assessments for 7 years for the Belastingdienst (as of Q2 2026, source: rijksoverheid.nl).

Question 4

Do I have to declare a foreign home in Box 3?

Answer

Yes. Dutch tax residents declare worldwide assets, including foreign real estate. The home is reported in Box 3 at WEV (market value) per 1 January. The tax treaty prevents double taxation: the home is fiscally allocated to the source country, but counts toward the Dutch tax-free allowance and the deemed-return rate (as of Q2 2026, source: belastingdienst.nl).

Question 5

How does the temporary Box 3 regime for 2025-2027 work?

Answer

Since the Hoge Raad ruling in December 2021 a transitional regime applies: taxpayers choose between the deemed-return system (real estate: 5.88% as of Q2 2026) and actual return. For foreign property yielding less than the deemed return you may opt for actual return via form OWR (source: belastingdienst.nl).

Question 6

Which treaty prevents double taxation between NL and Spain/UAE?

Answer

Between NL and Spain the 1971 treaty applies (renegotiated in 2025) — Spanish property is fiscally allocated to Spain (IBI + IRNR). Between NL and UAE the 2007 treaty applies — UAE levies 0% income tax on real estate, NL gives exemption with progressive reservation. Keep foreign tax assessments for 7 years for the Belastingdienst (as of Q2 2026, source: rijksoverheid.nl).

How is foreign property taxed in the Netherlands?

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Do I have to declare a foreign home in Box 3?

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Which treaty prevents double taxation between NL and Spain/UAE?

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How is foreign property taxed in the Netherlands?

Guides

Articles

Related topics

Frequently asked questions

Do I have to declare a foreign home in Box 3?

How does the temporary Box 3 regime for 2025-2027 work?

Which treaty prevents double taxation between NL and Spain/UAE?

Continue your research

Buying property in Spain as a Dutch resident

Mortgage calculator Spain & Dubai

Frequently asked questions