Saving money in the Netherlands currently yields against avery low interest rate, but fortunately, you also pay only a small amount of tax in Box 3. Saving abroad yields higher interest while you pay the same amount of tax. In this article, we will examine whether this is an attractive alternative.
Interest rates abroad are higher; the difference is about 1 to 1.5%. The explanation is simple: more people save in the Netherlands, so interest rates are lower. You pay tax on your savings in Box 3 based on a notional return, which for 2025 is provisionally set at 1.44%. This will only be finalized next year. This means that your savings abroad earn more interest and are taxed equally heavily in the Netherlands.
Directly or through the bank?
You can approach one or more foreign banks directly with your savings or use an intermediary. For example, Raisin is a well-known German company that acts as an intermediary for several banks within the EU. Raisin offers an overview of banks where you can place your savings and the interest rates these banks offer. You can choose whether or not to lock up your money for a longer period, which usually yields higher interest. The disadvantage is that you cannot access your money during that time, so you must be sure you can do without it for a longer period.
Saving within the EU?
It is safest to save at a bank using the euro. Most countries use the euro as their currency, so you do not face currency risk. Outside the eurozone, interest rates over 10% are offered, but then you must also consider currency and inflation risks. In the end, it is questionable whether your savings will still yield a net profit.
Guarantee up to EUR 100,000 – Within the EU, there is the so-called “deposit guarantee scheme.” This means that if the bank goes bankrupt, your savings are guaranteed by the government in most cases up to EUR 100,000. Because of this, it is wise to spread your savings over multiple banks if you have a larger amount of capital, each up to EUR 100,000.
Withholding tax in the EU – Some countries impose withholding tax on income from savings. Tax is then levied on the actual returns you earn. In most cases, as a Dutch resident, you can fully or largely reclaim this withholding tax, and your savings will be taxed according to Dutch rules. Keep in mind that saving in a country with withholding tax involves extra administrative work.
Saving outside the EU?
Saving outside the EU may seem attractive because of often higher interest rates but also involves additional risks and considerations. Reliable savings countries outside the EU include the United States, the United Kingdom, Switzerland, and Hong Kong. These countries sometimes offer interest rates higher than those within the EU, but it is important to consider currency risk, political stability, and regulations regarding savings.
In the United States and the United Kingdom, currency risk is important: the value of your euros may decrease or increase due to exchange rate fluctuations against the dollar or pound. Switzerland and Hong Kong are known for their stable financial systems and solid savings products, but currency risk also applies here.
Get Expert Financial Consulting
I help businesses implement future-focused accounting systems that drives better planning, smarter reporting, and sustainable growth. From wealth management and strategy to accurate statements, reporting, tax optimization, and modern accounting — I turn financial data into clear, actionable insights.
In addition, the protection of your savings in these countries is arranged differently than in the EU. Guarantee schemes vary, with different coverage amounts and conditions. Therefore, it is wise to be well informed in advance about the local deposit guarantee schemes.
Withholding tax and offsetting outside the EU – Many of these countries levy withholding tax on interest income. This means part of your interest is withheld directly by the foreign tax authorities. As a Dutch taxpayer, you can usually (partially) offset this foreign withholding tax with your Dutch tax return, so you are not taxed twice. However, this requires additional administrative tasks and maintaining the correct documents. Also, the amounts that can be offset vary by country due to bilateral tax treaties.
In short, saving outside the EU offers opportunities for higher returns but also requires careful consideration of currency risks, guarantee schemes, and administrative burdens. Make sure you are well informed before taking this step.
Practical example:
Suppose you have no partner, you own EUR 250,000 in assets, and you save it all. Assume the interest rate in the Netherlands is 1% and abroad 2.3%. Your return would then be EUR 2,500 and EUR 5,750, respectively. Based on provisional figures, you would pay EUR 996 tax in both situations. Net, this leaves a return of EUR 1,504 and EUR 4,754, respectively, a difference of EUR 3,250.
In the example above, we ignored the possibility to pay tax based on the actual return via the rebuttal rule. If that were taken into account, you would pay EUR 96 less tax saving in the Netherlands, making the net difference EUR 3,154.
Conclusion:
Saving abroad yields higher returns while you pay the same amount of tax. Keep in mind, however, that you will spend somewhat more time on administrative duties, for example, if you save in a country with withholding tax.
