The Netherlands is preparing for a major change in how investors are taxed, including those holding crypto in a hard wallet. Starting from 2028, the country plans to tax unrealized gains on assets such as Bitcoin, stocks, bonds, and other investments.
However, this means that investors could face taxes even if they do not sell their assets.
According to the Dutch parliament, the Netherlands will introduce a new tax system called Wet werkelijk rendement Box 3 starting January 1, 2028. Under this system, investors will be taxed each year based on the actual change in value of their assets, even if those assets are not sold.
The tax will apply to Bitcoin, other cryptocurrencies, stocks, bonds, and similar investments.
Instead of using estimated returns, the government will calculate tax by comparing the value of assets at the beginning and end of the year, plus any income earned during that period. This means both realized and unrealized gains will be included.
This reform follows a court ruling that declared the old Box 3 system unfair. The previous model taxed investors based on assumed returns, which often did not reflect real performance. Lawmakers say the new approach is more accurate and treats all asset classes equally.
Supporters believe this system creates fairness by taxing real gains instead of guesses. They argue it aligns better with modern investment markets, including crypto.
Under the new rules, tax will be calculated by comparing an asset’s value at the start and end of each year, plus any income earned during that period. A 36% flat tax will apply to positive net returns above a €1,800 annual threshold per person.
Meanwhile, if an investor records a loss, that loss can be carried forward and used to offset future gains, offering some balance within the system.
Critics warn that taxing unrealized gains may create liquidity pressure, forcing investors to sell assets just to pay taxes. Some also fear the change could push investors and crypto businesses to move out of the Netherlands.
For crypto users, the impact could be significant. Bitcoin and other digital assets are highly volatile. This could leave investors paying tax on paper gains without having sold any crypto or received cash.
Starting in 2028, the Netherlands will tax annual gains on investments, including crypto, even if assets aren’t sold.
Some investors may reduce exposure to volatile assets or shift toward lower-risk or income-generating investments. Others may reconsider where they hold assets due to higher ongoing tax pressure.
Assets without clear market prices, such as certain tokens or private investments, may create valuation disputes. This could increase administrative complexity for both taxpayers and tax authorities.
Lawmakers still need to finalize implementation rules, technical guidance, and reporting standards. Investors are expected to monitor updates closely and may seek tax planning advice ahead of the transition.
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