The Netherlands is planning a big change to its investment tax system, and it will also affect Bitcoin and other cryptocurrencies. From January 1, 2028, investors may need to pay tax on unrealized gains. This means taxes could be charged even if the assets are not sold.
The new rule will apply to Bitcoin, other cryptocurrencies, stocks, bonds, and similar investments. It will also include crypto stored in hard wallets.
Under this system, the government will look at how much an asset’s value changes during the year. Even if investors do not receive cash, they may still have to pay tax. This change could impact many long-term investors.
New Box 3 Tax System Explained
The Dutch government plans to introduce a new tax system called “Wet werkelijk rendement Box 3” starting in 2028. Under this system, investors will pay tax based on the real change in value of their assets each year.
This means the government will look at how much an asset, such as Bitcoin, stocks, or bonds, is worth at the beginning of the year and compare it to its value at the end of the year. Any income earned during the year, like interest or dividends, will also be added.
This new approach does not use estimated profits. Instead, it includes both sold (realized) and unsold (unrealized) gains. Even if an investor does not sell an asset, they may still have to pay tax if its value increases.
Why the Netherlands Is Changing the Tax Rules
The Netherlands is changing its tax rules after a court decision said the old Box 3 system was unfair. Under the old system, investors paid tax based on assumed profits, even when their investments did not actually earn that much. This caused problems, especially during years when markets performed poorly.
To fix this, the government plans to tax investors based on their real investment results. This means tax will be calculated using the actual change in value of assets, such as stocks, bonds, and cryptocurrencies like Bitcoin.
Lawmakers believe the new system is more accurate and fair. It treats all types of investments equally and matches modern financial markets better. Supporters say this approach is fairer because investors will pay tax on real gains, not estimated ones.
How the Tax Will Be Calculated
Under the new tax system, investors in the Netherlands will pay tax based on the real change in value of their assets each year. The government will compare the value of investments, such as Bitcoin, stocks, or bonds, at the beginning and end of the year. Any increase in value, along with income earned during the year, will be counted as profit.
A flat tax rate of 36% will apply to net gains that are higher than the €1,800 annual exemption per person. This means small gains below this limit will not be taxed.
If an investor makes a loss during the year, that loss will not be wasted. It can be carried forward and used to reduce tax on future gains, which helps balance the system for investors.
Impact on Crypto Investors
Taxing unrealized gains may create problems for crypto investors. Critics say investors might need to sell some of their crypto just to pay taxes, even if they do not want to sell. This can be difficult because crypto prices change very fast.
There are also fears that some investors and crypto businesses may leave the Netherlands to avoid higher taxes. Since Bitcoin and other cryptocurrencies are highly volatile, prices can rise on paper and then fall quickly. This means investors could pay tax on profits they never actually receive in cash.
