Double tax relief for foreign real estate
If you own real estate outside your country of fiscal residence, its value is included in your Dutch box 3 tax base. The Netherlands then reduces the tax proportionally — the prevention of double taxation. The Double taxation relief section on the box 3 return page shows the foreign tax base, foreign debt and the reduction per model.
Where to find this
Go to box 3 return;
- Scroll to the Double taxation relief section.
When this section appears
The section is only visible when at least one portfolio contains properties outside your country of fiscal residence. If all your properties are in your residence country, the section is not shown.
Foreign basis (market value, no leegwaarderatio)
The total market value of your foreign properties, weighted by your ownership share. No vacancy discount is applied, because that only applies to rented Dutch residential properties.
Foreign financing
The portion of your financing debt allocated to the foreign properties.
Reduction per model
In each model card — Estimated return (flat rate) and Actual return (counter-evidence) — three extra lines appear when foreign real estate is present: Tax before relief, the reduction with the proportionality percentage, and Payable in the Netherlands. The large amount on the card is always the amount after relief: what you actually pay in the Netherlands.
Missing market values
If a foreign property has no market value, it counts as € 0 and both the tax base and the reduction are too low. A warning appears that lets you see which properties are affected.
What is not included
Not included here: the tax the country itself levies on the rental income, carrying a negative foreign return forward to a later year, and the allocation between fiscal partners — which you are free to choose.