The Netherlands will impose a tax on unrealized capital gains in 2028

MissedTheBoat · 2026-01-30T10:04:01+00:00

The Dutch Parliament is set to vote on a significant tax reform proposal that will tax unrealized capital gains on all assets, including cryptocurrencies like Bitcoin, starting in 2028. The comprehensive "Box 3 Tax Law" stipulates a 36% annual tax on asset appreciation, regardless of whether profits have been realized through sales. Despite concerns about the law's design, parliamentary support is driven by the government's financial needs, anticipating an annual loss of €2.3 billion if delayed. The reform follows a court ruling challenging previous tax assessment methods, suggesting strong legal grounds for implementation.

MissedTheBoat

2026-01-30 10:04:01

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In a significant tax reform step, the Dutch Parliament will face an important vote on a proposal to tax paper gains starting in 2028. This policy will apply to all assets, including cryptocurrencies like Bitcoin, with a comprehensive and controversial calculation mechanism.

Box 3 Policy: Cryptocurrency and Other Assets Affected

The reform known as the ‘Actual Return Tax Act for Box 3’ will change how the Dutch government assesses the wealth of its investors. The Box 3 system is a tax category applicable to non-business assets such as stocks, bonds, and cryptocurrencies. With this decision, the government will impose an annual tax rate on asset appreciation, even if investors have not realized the gains through sale. This means Bitcoin owners and other investment instrument holders will pay taxes on the growth of their asset values each year, creating a unique tax burden in the digital investment industry.

Calculation Mechanism and 36 Percent Tax Rate

Technical details of this policy show that investors will face an estimated tax rate of 36 percent on unrealized gains. Each year, asset appreciation will be assessed individually, and taxes will be levied based on this growth. This system forces cryptocurrency investors and other asset holders to pay tax obligations from their existing resources, not from actual sale proceeds. This mechanism presents particular challenges for long-term holders who do not have regular cash flows.

Reasons for Parliamentary Support and Economic Considerations

Despite awareness of flaws in this law’s design, the majority of Parliament members still support the initiative. The main motivation is the government’s financial considerations: delaying the implementation of this tax policy is estimated to cost the state treasury €2.3 billion annually. The decision to tax unrealized capital gains is also based on a previous Dutch court ruling that the virtual valuation method used by the government was unconstitutional. With a solid legal foundation and urgent budget needs, Parliament is expected to approve this comprehensive tax reform to take effect in 2028.

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