Netherlands approves profit law bill: annual capital gains tax starting from 2028

The Dutch Parliament is preparing to pass a legislative initiative that will transform the taxation of investments in cryptocurrencies and other assets. The gains law, formally known as the Real Yield Tax Law of Box 3, will impose annual levies on the appreciation of assets, even when investors have not sold. This measure marks a significant change in how European governments approach the taxation of digital assets.

How the new taxation system will work

According to reports from Foresight News, the gains law will establish a 36% tax rate on annual asset revaluation. Bitcoin holders, stock investors, and other investment instruments will be required to pay taxes on theoretical gains each fiscal year, regardless of whether they have sold or held their positions. This approach represents a radical shift from traditional tax systems that only tax when an actual transaction occurs.

Legal context and reasons for the reform

The initiative arises in response to a previous judicial ruling. A Dutch court invalidated the previous method used by the government to calculate taxes based on virtual returns, considering it unlawful. Although lawmakers acknowledge deficiencies in the current proposal, the majority of parliament supports it. The main justification is economic: delaying the gains law would mean the state would stop collecting approximately €2.3 billion annually.

Implications for crypto asset investors

This gains law will directly affect cryptocurrency holders, who will face tax obligations on the theoretical increase of their holdings. Unlike systems where taxes are only paid upon sale, this regulation creates an annual tax liability that persists as long as the assets are held. Implementation is scheduled for 2028, providing a transition period for investors to adapt to the new tax requirements.