Europe's Strategic Wealth Advisory Opportunity: Navigating Dutch Tax Reform and U.S. Policy Shifts

In late September 2025, while enjoying a modest box of Belgian chocolates in Brussels, I received an unexpected call from our Dutch partner, Coen. His voice was filled with enthusiasm:

“You need to hear this,” he said. “Dutch Box 3 changes are reshaping the European wealth advisory landscape.”

This wasn't just another tax update. Coen was referring to significant reforms in the Netherlands' Box 3 tax system, which had been a longstanding point of contention. The Dutch Supreme Court had previously ruled that the wealth tax was discriminatory, prompting the government to overhaul the system.

Key Aspects of the Dutch Box 3 Reform

The new legislation, set to take effect in 2028, introduces two main categories of taxation:

• Capital Growth Tax: This tax applies to most assets, taxing both realized and unrealized returns, including appreciation in value and income from assets like shares, cryptocurrencies, and savings. Exchange results on bank balances in currencies other than EUR will also be taxed.
• Capital Gains Tax: This tax focuses on immovable property and certain start-up investments. All ‘annual’ benefits, such as dividends and rental income, will also be taxed, and costs, such as interest on loans and maintenance costs, will be deductible. Positive appreciation in value will be taxed, and depreciation in value will be deductible. Unlike the capital growth tax, capital gains tax will, in principle, only be levied at the time of realization.

Additionally, the Dutch government has proposed increasing the deemed return for the category of other assets from 5.88% to 7.78%, while reducing the tax-free allowance from EUR 57,684 to EUR 51,396 per taxpayer, effective from 1 January 2026.

Impact of U.S. Tariffs on European Investment

The U.S. administration's introduction of tariffs and unpredictable trade policies have led to a revaluation of investment strategies. Notably, DWS CEO Stefan Hoops reported a significant "structural shift" in investor behaviour, with European retail investors repatriating savings from U.S. markets back to Europe.

French industrial leaders have expressed deep concern over the escalating U.S. tariffs, describing them as a "major global upheaval." Since the declaration of "Liberation Day" on April 2, 2025, the U.S. has imposed fluctuating tariffs on EU goods, including significant hikes on steel (+50%), aluminium (+50%), and automobiles (+25%). New tariffs announced in September include 100% on pharmaceuticals produced outside the U.S. and 50% on kitchen and bathroom furniture.

These developments have led to a decline in French exports to the U.S. by 5% in the first half of 2025, particularly in metals, automotive, pharmaceuticals, and cosmetics. Conversely, the aeronautics sector saw a 21% rise. Preventive exports boosted early-year figures for wine, champagne, and luxury goods, but the weakening dollar—down over 10% against the euro—has complicated trade further.

Strategic Implications for Wealth Advisory Firms

The convergence of Dutch tax reforms and U.S. policy shifts has inadvertently created Europe's most significant wealth advisory opportunity in decades. Advisory firms that recognize and adapt to these changes are poised to become trusted partners in navigating this evolving landscape.

As the EU continues to position itself as a stable and transparent alternative to traditional financial centres, the question isn't whether Europe will become the new Switzerland—it's whether your firm will be ready to lead clients through this transformation.