Dutch House passes 36% tax on unrealized crypto and investment gains

The Dutch House of Representatives passed on Thursday legislation that will fundamentally reshape how the country taxes investment gains, including those from crypto assets, starting January 2028.

The bill, known as the Actual Return in Box 3 Act (Wet werkelijk rendement box 3), introduces a capital growth tax on most assets, such as stocks, crypto, and bonds.

Under the new framework, residents will be taxed each year at a rate of around 36% on their actual returns from savings and investments, even if the assets are not sold. This means taxes will apply not only to income received, but also to increases in asset values, including unrealized gains.

Real estate and shares of startups will follow different rules. For these assets, tax will mainly be charged when a profit is actually made, also known as capital gains tax. However, income from these assets, such as rent or dividends, will still be taxed in the year it is received.

The new system has drawn backlash from crypto community members, who warn that it could force people to pay taxes without having sufficient cash to do so.

Price swings are another key concern, especially for crypto assets, as paper profits could be wiped out after taxes.

Parliament approved an amendment to cut the review period from five years to three. The change is meant to allow faster adjustments if the rollout runs into problems.

In addition, a coalition of major Dutch political parties (D66, VVD, and CDA) has signaled plans to eventually move toward a capital-gains model, with draft legislation expected by Budget Day 2028. Under that system, taxes would apply only when assets are sold, easing cash-flow pressures but reducing short-term government revenue.