The Netherlands is an excellent place to start investing. With strong investor protections, access to major European and global markets, and a relatively straightforward tax system, expats can build wealth efficiently here. But the Dutch tax treatment of investments is unique, and choosing the wrong broker or strategy can cost you.
This guide walks you through everything you need to know to start investing as an expat in the Netherlands.
Why Should Expats Invest in the Netherlands?
Several factors make the Netherlands an attractive place to invest:
- No capital gains tax — the Netherlands does not tax you on actual investment returns. Instead, you pay a wealth tax (Box 3) based on the total value of your assets. This is a major advantage for high-growth investments
- Access to European markets — brokers based in the EU offer access to Euronext, Xetra, and other European exchanges with low fees
- Strong regulation — Dutch financial markets are regulated by the AFM (Authority for Financial Markets) and DNB (Dutch Central Bank)
- 30% ruling benefits — if you have the 30% ruling, your Box 3 exemption can be significant
Understanding Box 3 Tax on Investments
The Dutch tax system divides income into three "boxes." Investments fall under Box 3, which taxes the value of your assets — not your actual returns.
Here is how it works in 2026:
- Your total assets (savings, investments, property excluding primary residence) minus debts above a threshold are calculated on January 1
- A tax-free allowance of approximately €57,000 per person (€114,000 for fiscal partners) is subtracted
- The remaining amount is taxed based on a deemed return that varies by asset category — savings get a lower deemed return than investments
- The tax rate on the deemed return is approximately 36%
For a deeper dive, see our complete Box 3 wealth tax guide.
The practical implication: if your investments grow by 15% but Box 3 assumes a deemed return of approximately 6%, you are only taxed on the 6%. This makes the Dutch system very favorable for investors who earn above-average returns.
The 30% Ruling and Investing
If you benefit from the 30% ruling, you can claim an exemption on your Box 3 assets. Specifically, your foreign assets (investments held outside the Netherlands) may be partially or fully exempt from Box 3 tax.
However, the exact rules are complex and have changed in recent years. Consult a tax advisor to understand how this applies to your specific situation, especially if you hold investments in accounts registered abroad.
Choosing a Broker
Selecting the right broker is one of the most important decisions. Here are the top options for expats in the Netherlands:
DeGiro
DeGiro is the most popular broker in the Netherlands with over 2 million users. It offers extremely low fees, a user-friendly platform, and a selection of commission-free ETFs (the "Core Selection"). The interface is available in English, and it integrates well with Dutch tax reporting.
- Pros: very low fees, commission-free core ETFs, excellent for beginners
- Cons: limited research tools, no fractional shares, basic mobile app
Interactive Brokers (IBKR)
Interactive Brokers is the gold standard for serious investors. It offers access to virtually every market worldwide, professional-grade tools, and competitive pricing. The learning curve is steeper, but the capabilities are unmatched.
- Pros: global market access, advanced tools, multi-currency accounts, fractional shares
- Cons: complex interface, can be overwhelming for beginners
Trade Republic
Trade Republic has grown rapidly in Europe with its sleek app, commission-free trading, and attractive savings interest rate. It is a strong option for expats who want a simple, modern investing experience. See our full Trade Republic review.
- Pros: beautiful app, fractional shares, savings interest, free ETF savings plans
- Cons: limited to one exchange (mostly LS Exchange), fewer advanced features
For a detailed comparison, see our guide to the best ETF brokers in the Netherlands.
Building an Investment Strategy
Index Funds and ETFs: The Core Strategy
For most expats, a simple portfolio of low-cost index ETFs is the optimal strategy. Research consistently shows that passive index investing outperforms active stock picking for the vast majority of investors over the long term.
A straightforward approach:
- Single global ETF: Something like Vanguard FTSE All-World (VWRL/VWCE) or iShares MSCI ACWI gives you exposure to thousands of companies across developed and emerging markets in a single fund
- Cost: total expense ratios (TER) for these ETFs are typically 0.20-0.25% per year
- Accumulating vs distributing: "Accumulating" ETFs (like VWCE) reinvest dividends automatically, which is generally more tax-efficient in the Netherlands since Box 3 does not separately tax dividends
How Much to Invest?
A common guideline is to invest money you will not need for at least 5-10 years. Before investing, make sure you have:
- An emergency fund covering 3-6 months of expenses in a savings account
- Paid off any high-interest debt
- Set up your Dutch health and liability insurance
Many expats start with a monthly investment plan (sometimes called "dollar-cost averaging") of €200-500 per month. The most important factor is consistency — regular investing over time matters far more than trying to time the market.
Common Mistakes to Avoid
- Over-diversifying with too many funds — one or two global ETFs is sufficient for most people
- Chasing past performance — last year's top-performing sector rarely repeats
- Timing the market — even professional fund managers consistently fail at this
- Ignoring fees — a 1% annual fee difference compounds dramatically over 20+ years
- Not considering your departure — if you might leave the Netherlands, consider how your broker and investments will be affected. Some brokers may restrict your account if you move to certain countries
Tax Reporting for Investments
When filing your Dutch tax return, you need to declare the total value of your investments as of January 1 of the tax year. Most Dutch brokers provide an annual tax overview (jaaroverzicht) that makes this straightforward.
If you use a non-Dutch broker like Interactive Brokers, you may need to manually calculate and report your holdings. Keep good records throughout the year.
Getting Started: A Step-by-Step Plan
- Open a Dutch bank account if you have not already
- Build your emergency fund first (3-6 months of expenses)
- Choose a broker — DeGiro for simplicity, IBKR for advanced features
- Complete the broker's onboarding (you will need your BSN and proof of address)
- Select one or two broad market ETFs
- Set up a monthly automatic investment plan
- Review your portfolio quarterly, but resist the urge to tinker
- Report your holdings in your annual tax return
Investing does not need to be complicated. A simple, consistent approach with low-cost ETFs will serve most expats well over the long term.