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Yes you've paid income tax for it and have to pay VAT if you buy something. The idea is you are going to invest / save the money and earn interest, get dividen

Yes you've paid income tax for it and have to pay VAT if you buy something. The idea is you are going to invest / save the money and earn interest, get dividends or profit from the stock price itself. The old system used a virtual profit of 4% a year, and over this 30% tax needs to be paid. That's 1,2% over the amount above EUR 25.000 (per person, so 50.000 if you're together with someone) Mind you do not have to pay tax over the real profits, and also pay if you loose. So if you make 8% a year, you are only taxed as if you've made 4% , but if you lost 8% you're still taxed for 4% They are changing it to a way the rate reflects the real interest rate better, and many people want the real profits to be taxed. I personally don't, because if you're just a bit good with ETF's you're easy beat the 4%

walshemj 8y ago
Oh that's strange I have had one stock that did 100% plus in a year in the uk - so in Holland I would only pay 4%. They don't separate income vs capital gain ?
- hondadriver 8y ago
  On your possessions above 25.000 (ex first home) on January 1st, you pay as if you will be making 4% the coming year. The tax is 30% over this virtual 4% gain. So 1,2% tax over the amount above 25.000 But mind if you keep the possessions, next year you again have to pay 1,2% over their value. In the case of profit tax, you only pay tax once over the real profit. (And can deduct loses) So in case you have 100.000 at the start of the year, you pay 900 tax. (1,2% of 75.000) Now if you make 100% profit and start the next year with 200.000, you'll pay 2.100 tax. Let's say you stop here and keep this amount for 4 years on a 0% interest account, you have to pay 2.100 every year. So a total of 9.300 tax If there would be profit tax of 30% you would pay 30.000 once. (30% on the 100.000 profit) So if you're an active succesful investor, the Dutch system mostly is way better. But now people are complaining it is not fair, because a savings account doesn't return 4%. Being an investor myself I fear we will get profit tax in the future.
- hondadriver 8y ago
  There is income tax (interest / gains on stocks / crypto etc is not seen as income). And there is tax on your valuable possessions on the first of January, exceeding 25.000 a person, so 50.000 if you're together, ex. your first home and substantial ownership of a company. First home is tax free. Subtantial company ownership is taxed differently. Valuable possessions include art and cars kept only as investment (gray area), cash (exceeding a certain limit), crypto currencies, second home(s), stocks, bonds, savings.. but not the things you use in your household, such as the family car(s)..

walshemj 8y ago

Oh that's strange I have had one stock that did 100% plus in a year in the uk - so in Holland I would only pay 4%. They don't separate income vs capital gain ?

hondadriver 8y ago
On your possessions above 25.000 (ex first home) on January 1st, you pay as if you will be making 4% the coming year. The tax is 30% over this virtual 4% gain. So 1,2% tax over the amount above 25.000 But mind if you keep the possessions, next year you again have to pay 1,2% over their value. In the case of profit tax, you only pay tax once over the real profit. (And can deduct loses) So in case you have 100.000 at the start of the year, you pay 900 tax. (1,2% of 75.000) Now if you make 100% profit and start the next year with 200.000, you'll pay 2.100 tax. Let's say you stop here and keep this amount for 4 years on a 0% interest account, you have to pay 2.100 every year. So a total of 9.300 tax If there would be profit tax of 30% you would pay 30.000 once. (30% on the 100.000 profit) So if you're an active succesful investor, the Dutch system mostly is way better. But now people are complaining it is not fair, because a savings account doesn't return 4%. Being an investor myself I fear we will get profit tax in the future.
hondadriver 8y ago
There is income tax (interest / gains on stocks / crypto etc is not seen as income). And there is tax on your valuable possessions on the first of January, exceeding 25.000 a person, so 50.000 if you're together, ex. your first home and substantial ownership of a company. First home is tax free. Subtantial company ownership is taxed differently. Valuable possessions include art and cars kept only as investment (gray area), cash (exceeding a certain limit), crypto currencies, second home(s), stocks, bonds, savings.. but not the things you use in your household, such as the family car(s)..