TLDR
- The Dutch House of Representatives has passed a law introducing a 36% tax on unrealized crypto and investment gains.
- Starting in January 2028, the new law will tax actual returns from savings and investments, including crypto assets.
- Crypto holders will be taxed on the value of their assets as of January 1 each year, regardless of market changes later.
- Real estate and startup shares will follow different rules, with tax applied when profits are realized.
- The law has faced criticism from the crypto community, concerned about paying taxes on unrealized gains.
The Dutch House of Representatives has passed new legislation that will overhaul the taxation of investment gains in the country. The legislation, known as the Actual Return in Box 3 Act, introduces a capital growth tax on most assets, including crypto. Starting in January 2028, this reform will apply to unrealized gains, meaning taxes will be levied on the increase in value of assets such as stocks, crypto, and bonds, even if those assets are not sold.
Crypto Tax Impact in the Netherlands
The new crypto tax law will apply to crypto assets as part of a broader shift in how investments are taxed in the Netherlands. Crypto holders will face a tax rate of around 36% on the actual return from their holdings each year. The tax will be based on the value of the assets as of January 1, not accounting for any price fluctuations throughout the year. As a result, investors may be taxed on unrealized gains, even if the value of their crypto drops later in the year.
The tax will apply to all types of crypto assets classified as “other assets” within Box 3. Under the current system, the Dutch tax authorities use a fixed presumed return percentage to calculate taxable gains. This fixed percentage is then taxed at the 36% rate. As the system does not account for market changes, crypto investors may face a tax burden in years when market prices decline after the January 1 valuation.
How the New Law Affects Real Estate and Stocks
Real estate and shares of startups will follow different rules under the new law. Taxes on these assets will be mainly applied when a profit is actually realized, rather than on unrealized gains. However, income from these assets, such as dividends or rental income, will still be taxed in the year it is received. These new tax guidelines will differentiate between income from real estate, stocks, and crypto, which will be taxed based on a government-calculated return.
The system will introduce new complexities for taxpayers. For example, the valuation of assets like crypto will occur at the start of the year, and any changes in value later won’t be taken into account for tax purposes. This snapshot system will likely result in tax liabilities that do not match actual market performance, leading to potential disparities between what is owed and the value of assets.
The new rules come as part of a wider plan to overhaul the Dutch tax system. By 2028, a shift toward a capital-gains model could ease cash-flow pressures for investors. Under the proposed changes, taxes would apply only when assets are sold, rather than on unrealized gains.
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