Tax season is upon us, marked by the arrival of blue envelopes containing an invitation to file a tax return. When you log in to the website of the Dutch tax authority, belastingdienst.nl, you'll find that many details have already been pre-filled, such as your income and bank account information. In the Netherlands, you're required to pay taxes not only on your employment income, but also on any potential earnings from your assets.Unlike some countries, the Netherlands does not have a wealth tax per se. The actual interest and investment income you receive is not directly taxed. However, as part of the income tax system, a hypothetical or "fictitious" income is calculated based on the value of your portfolio, including bank accounts, shares, or even a second home. This imputed income is then taxed under the "box 3" system.

Our expert guest, Steve Ten Bokum from Expat-service.nl, is here to explain this concept in more detail. Our podcast host, Jean-Paul Linnartz, is not afraid to dig deeper and find out how this system works in practice. Can you simply tick the boxes on your tax return, or do you need to account for assets beyond what the tax authority has already compiled for you?