Netherlands Backs 36% Tax on Unrealized Crypto Gains Starting 2028
Dutch Parliament moves to tax unrealized crypto profits at 36% annually under the new ‘Box 3’ regime, forcing investors to pay for paper gains starting in 2028.
The Dutch House of Representatives (Tweede Kamer) has moved to approve a controversial overhaul of the country’s wealth tax regime, signaling the end of tax-free HODLing for Dutch residents. Under the new Wet werkelijk rendement Box 3 (Actual Return Box 3 Act), investors will face a 36% annual levy on unrealized gains from liquid assets, including Bitcoin and equities, starting January 1, 2028.
This policy shift replaces the current "fictitious return" model, which the Dutch Supreme Court ruled unlawful for violating property rights. While the court demanded a system based on actual returns, the government’s solution, a "capital growth tax" (vermogensaanwasbelasting), creates a liquidity trap for crypto investors. If a portfolio appreciates in value between January 1 and December 31, the owner owes tax on that paper gain, regardless of whether they sold a single satoshi.
The Liquidity Squeeze
The implications for high-volatility assets are severe. An investor who bought Bitcoin at €40,000 and watched it climb to €80,000 would owe roughly €14,400 in taxes on the appreciation alone. If the market crashes the following January, the tax bill remains due based on the December 31 snapshot. This structure effectively forces investors to sell assets annually to cover tax liabilities, stripping the compounding power from long-term positions.
“For crypto owners, this is bad news. Tax must be paid on realized and unrealized returns… forcing payment on money you haven’t received.”, Jongbloed Fiscaal Juristen, Legal Analysis
Institutional Context: The ‘Fairness’ Trade-Off
State Secretary Tjebbe van Oostenbruggen pushed the bill through despite a critical advisory from the Council of State, arguing there was “no other viable route” to comply with the Supreme Court’s mandate. The previous system taxed citizens on assumed profits (e.g., assuming a 5% return even if the portfolio lost money). The new regime corrects this by allowing loss carry-forwards, but the inclusion of unrealized gains aligns the Netherlands with the aggressive taxation models often discussed but rarely implemented in other EU jurisdictions.
Bitcoin traded flat at €75,800 (-0.2%) following the news, as the 2028 implementation date offers a three-year window for relocation or restructuring. However, the precedent is set: the Netherlands is closing the door on passive accumulation as a tax-deferred strategy.
