Netherlands to Tax Unrealized Crypto Gains Starting 2028; Market Shrugs

The Fiscal Dragnet Expands

The Dutch House of Representatives (Tweede Kamer) has backed a controversial overhaul of the nation’s wealth tax regime, setting the stage to tax unrealized capital gains on cryptocurrency starting January 1, 2028. The reform, known as Wet werkelijk rendement Box 3 (Actual Return Act), will require investors to pay a 36% levy on the annual value increase of their assets, even if they haven’t sold a single satoshi.

Despite the draconian implications for long-term holders, the crypto market ignored the distant regulatory threat. Bitcoin (BTC) held steady at $90,081 (+1.2%), with traders focused more on immediate liquidity flows than a tax bill due in four years.

The Receipt: Taxing “Paper Profits”

Under the new framework approved by a parliamentary majority, the Dutch tax authority will abandon its current system of “fictitious returns” (assumed profit percentages). Instead, it will calculate tax based on the actual difference in an asset’s value between January 1 and December 31 of each year.

The reform, known as Wet werkelijk rendement Box 3, is scheduled to take effect in 2028 and will tax actual returns by measuring the difference between an asset’s value at the start and end of each year.

This creates a distinct liquidity risk for crypto investors. If a portfolio swells from €50,000 to €100,000 during a bull run, the owner owes tax on the €50,000 gain immediately, regardless of whether they have the cash on hand to pay it. The plan includes a tax-free allowance of approximately €1,800, but the 36% flat rate above that threshold is steep by global standards.

Institutional Context: A €2.3 Billion Hole

The legislative push is driven less by anti-crypto sentiment and more by fiscal desperation. The Dutch Supreme Court previously ruled the old tax system unlawful, creating a legal vacuum. Delaying the new system beyond 2027 would cost the Dutch treasury an estimated €2.3 billion annually in lost revenue.

While parties like the VVD and PVV expressed reluctance due to the administrative burden and impact on small investors, they ultimately supported the measure to plug the budget gap. Critics warn this could trigger capital flight, forcing crypto enterprises and high-net-worth holders to relocate to friendlier jurisdictions like Belgium or Switzerland before the 2028 deadline drops.