Netherlands Introduces New Tax on Unrealized Gains

The Dutch House of Representatives has passed legislation that will significantly change the way investments, including cryptocurrencies, are taxed. The new rules are scheduled to take effect in January 2028.

The law, titled the Actual Return in Box 3 Act, introduces a tax on the increase in value of most assets, including stocks, cryptocurrencies, and bonds. Under the new framework, residents will pay approximately 36 percent annually on actual returns from savings and investments. Importantly, the tax will apply not only to realized income but also to increases in asset value — even if the assets have not been sold. In practice, this means taxing so-called unrealized gains.

Different rules will apply to real estate and shares in startups. In these cases, the tax will generally be collected when profits are actually realized, such as at the time of sale. Income streams like rent or dividends will continue to be taxed in the year they are received.

The new regulations have sparked opposition within parts of the cryptocurrency community. Critics argue that investors could be required to pay taxes despite having no available cash, as their gains may exist only on paper. Another concern is the high volatility of cryptocurrency markets. Asset values could decline after taxes have already been paid on prior increases.

Parliament also adopted an amendment shortening the review period for the legislation from five years to three. This change is intended to allow faster adjustments if the new system proves problematic.

At the same time, a coalition of major political parties — D66, VVD, and CDA — has announced plans to eventually shift toward a capital gains tax model. A draft proposal is expected by 2028. Under that system, taxes would only be levied when assets are sold, reducing liquidity pressure on investors but potentially lowering short-term government revenue.