New Dutch Tax Law: Paper Gains Get a 36% Slice of the Crypto Pie!

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Ah, the Dutch lawmakers have donned their finest robes of bureaucracy and bestowed upon us a curious piece of legislation – a marvelous 36% tax on actual investment returns that shall take effect in 2028. Yes, you heard it right! This law does not discriminate, extending its greedy fingers toward cryptocurrencies like bitcoin and ethereum, taxing those elusive ‘paper gains’ even if one has not parted with their coins.

Taxing the ‘Paper Gains’

The illustrious Dutch House of Representatives has given birth to the Actual Return in Box 3 Act – a splendid reform that will demand dutiful residents cough up a flat 36% on their ‘actual returns’ from savings and investments starting January 1, 2028. This delightful package even throws cryptocurrencies into the mix, demanding tribute for both realized and unrealized gains. It’s a veritable feast for the taxman!

Under this new regime, our dear Dutch investors will find themselves liable not only for the income they receive but also for the annual increase in the worth of assets like bitcoin, ethereum, and other digital wonders. Yes, my friends, welcome to the wonderful world of taxation where even your dreams are taxed!

Imagine, if your crypto portfolio experiences a delightful rise of $11,850 (€10,000) within a year, congratulations! You must now treat that paper gain as taxable income, even if you’ve resolutely refused to sell. However, fear not, for real estate and qualifying startup shares have received a golden ticket from this annual mark-to-market madness and will be taxed only upon sale. Lucky them!

As per a rather enlightening report, this delightful distinction has stirred quite the pot among crypto holders, who lament that such a system could compel them to liquidate their precious assets merely to satisfy tax obligations. Critics echo their concerns, suggesting this tax burden might send many crypto investors packing for greener pastures with friendlier tax regimes. The government, in its infinite wisdom, acknowledged liquidity risks in its explanatory memorandum but defended the initiative as a necessary step to prevent the loss of billions in revenue. Ah, the noble pursuit of tax revenue!

But wait, there’s a silver lining! The new law introduces several measures to cushion the blow, including a tax-free annual return of $2,130 to protect small savers. It also allows unlimited loss carry-forward for net losses exceeding $590, enabling investors to offset downturns against future gains. Yet, crypto advocates argue these provisions do little to solve the fundamental absurdity of taxing gains that exist solely on paper. Truly, it is a spectacle worth a good laugh!

According to De Nederlandsche Bank, indirect crypto investments by Dutch companies, institutions, and households soared to a staggering $1.42 billion by October 2025, a mighty leap from a mere $96 million in 2020. Meanwhile, direct crypto holdings in the financial sector reached $134 million in the third quarter of 2025. A veritable gold rush, one might say!

While these figures represent a mere 0.03% of total Dutch securities holdings, the rapid growth hints at the sector’s burgeoning significance and the potential consequences of this new tax regime. The Dutch method of taxing annual portfolio value fluctuations, including crypto, appears quite peculiar by continental standards. A unique flourishing garden of fiscal creativity, indeed!

Officials, however, cling to the belief that the long-term policy aim is to transition toward a realized capital gains model. But for now, the taxation of unrealized crypto gains is regarded as the only lifebuoy for public finances. How charmingly pragmatic!

FAQ ❓

  • How will crypto be taxed in the Netherlands from 2028? Dutch residents will pay a flat 36% tax on both realized and unrealized gains each year. A delightful arrangement, don’t you think?
  • Does the law treat crypto differently from real estate or startups? Indeed! Crypto gains are taxed annually, while real estate and qualifying startup shares are only taxed upon sale. A fairytale for the real estate moguls!
  • What protections exist for small savers and investors? The law exempts the first $2,130 of annual returns and allows unlimited loss carry‑forward above $590. A generous gesture, wouldn’t you say?
  • Why are Dutch crypto holders worried? Taxing paper gains could force investors to sell assets just to cover tax bills, driving some to consider relocating. Ah, the sweet scent of freedom beckons!

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2026-02-17 11:07