Box 3 is changing: why your real estate strategy is now on the agenda
Mats Kramer
9 maart 2026
4 min read
Box 3 is changing: why your real estate strategy is now on the agenda
Introduction
The investment landscape is shifting. Not all at once, but noticeably. Higher interest rates, changing tax rules, stricter financing conditions—the model that worked for years now calls for a reassessment.
This makes now the ideal moment to rethink your strategy.
Direct real estate holdings work differently than before
For years, the formula was simple: buy real estate, rent it out, and wait for it to increase in value. For many investors, this worked without much maintenance or hassle.
Now, too many things are changing at once. Box 3 is set to change. Interest rates are rising. Existing loans are being refinanced at higher costs. Sustainability requirements are becoming stricter. Without diversification and economies of scale, the negative impact of these developments is felt more quickly.
The question is shifting from “which property should I buy?” to “how do I structure my portfolio so that it remains profitable and resilient?”
Box 3: a practical problem emerges
From 2028 onwards, you will likely pay tax on actual returns instead of a deemed/fictitious return. That sounds logical. Yet a practical problem arises:
You pay tax on the increase in value of your property before you’ve actually converted that value into cash. For example, if your property rises €100,000 in value but you don’t sell it, you would still owe tax on that increase—while that €100,000 exists only on paper.
For many investors who rely on rental income for reinvestment, income generation, or retirement planning, this can make a significant difference. The exact implementation is not yet clear, but the Box 3 issue is current and the government’s policy over recent years has not been stable, which adds to the uncertainty.
Concentration in one or two properties: riskier than it seems
A common pattern: owning a single commercial property, supplemented with one or two additional assets. For decades, this posed no problem. But now, a single adverse event—vacancy, interest rate shock, or a sector-specific crisis—can have significant consequences.
Diversifying across more properties helps, but building a well-diversified portfolio yourself is time-consuming and costly. Brokerage fees, legal costs, financing negotiations—and constant monitoring—conflict with the passive investment experience that many investors seek.
“Changing regulations and market conditions make this the right moment to stop looking at individual properties, and instead focus on the strength of your overall portfolio.”
Investor Relations Manager
What are the options?
If you want to reconsider your strategy, there are several routes. Some investors choose to acquire more direct properties and professionalize their management. Others look for ways to better spread risk and reduce administrative burden.
One option that is becoming increasingly relevant: investment funds.
Investment funds offer the following advantages in the current environment:
- Diversification without having to build everything yourself;
- Professional management that monitors and adjusts the portfolio;
- Liquidity: you can sell shares without a complicated sales process;
- Reduced administrative burden and cost efficiencies through scale;
- Transparent reporting and clear structure;
- Certain tax benefits, for example regarding transfer taxes.
This isn’t for everyone. If you own a freehold property and intend to keep it indefinitely, you don’t need to consider it. But for high-net-worth individuals with multiple properties or those who want to spread their risk, it can be an interesting option.
It’s about making deliberate choices.
The point isn’t that you have to do something. The point is that you need to make a conscious choice. Critically evaluate your current strategy in light of potential Box 3 changes, rising interest rates, and shifting market conditions.
For some, direct real estate ownership remains the right answer. For others, a mix of direct ownership and indirect participation makes more sense. And for others still, a different type of investment may be the smarter option.
What is important for everyone: now is the time to critically review your investment strategy.
At Benkey, we offer multiple investment solutions tailored to different needs. If you want indirect ownership of a diversified commercial real estate portfolio, our Real Estate Fund provides the opportunity to benefit from passive income combined with capital growth. If you prefer a fixed term and fixed interest rate, our Real Estate Loan option allows you to select the property yourself while securing your investment with a first-priority mortgage.
Conclusion
Want to find the best structure for your situation?
We are happy to help you evaluate the different investment products and their characteristics.
This article is intended for general informational purposes and does not constitute investment advice. For your personal situation, we recommend consulting a specialist.
On this page, we show how you can reposition your real estate assets in preparation for the upcoming changes in Box 3—enhancing flexibility, diversification, and transparency.
