Sustainable investing without tax breaks: what will change for investors?

For investors who care about sustainability, investing in green funds for years offered not only a social benefit, but also a tax advantage. However, that tax incentive is being phased out, with major consequences.

Until the end of 2024, investing in recognised green funds was extra attractive. A good amount was exempt from tax in Box 3, and on top of that, a tax credit applied. This could amount to over €2,000 in tax benefits per person.

But since 2025, these benefits have been sharply scaled back. The exemption fell to €26,312 and the tax credit to just 0.1%. By 2027, these tax schemes will even disappear altogether.

As these benefits decline, the financial motivation for many investors to get into green funds disappears. After all, most of these funds offer lower returns than regular investment options. This has prompted many funds to quit. Of the 11 officially recognised green investment funds, six have already disappeared.

Yet this does not mean that SRI is a thing of the past. Even without tax benefits, it is still possible to consciously invest in sustainable funds or companies. The focus shifts from tax benefit to social impact or long-term value creation.

For investors, it remains important to periodically evaluate their investment strategy.

• Is sustainability still a goal?
• Are there alternatives that are better suited to the changed tax situation and personal ambitions?

Be well informed, that way your investment policy will remain future-proof, even without tax incentives.