Dutch government may revise 36% tax on unrealized crypto and investment gains

Dutch Finance Minister Eelco Heinen has announced plans to revise the proposed Box 3 tax overhaul, admitting that it cannot proceed in its current form.

“I don’t think the law can pass as it is,” Heinen told RTL Nieuws. “I think something simply went wrong here, and the current law needs to be amended.”

He has already consulted his State Secretary and wants to return to the drawing board with the House and Senate. It is unclear whether the legislation will be partially amended or fully rewritten.

The new system, set to take effect in 2028, would impose a 36% levy on asset appreciation, including paper gains, across savings, equities, bonds, and digital assets.

The measure would tax asset growth even if profits have not been cashed out, while real estate and startup shares are mostly taxed only when sold, with income such as rent or dividends still taxed annually.

While the House has approved the plan, the Senate and investors have raised concerns about higher taxes and liquidity risks.

Critics have focused on the treatment of paper gains, arguing that taxing appreciation before assets are sold could force liquidations and trigger capital outflows. Investors holding crypto would face identical treatment to those with traditional portfolios.

That prompted Parliament to shorten the review period from five years to three. Lawmakers also indicated a future shift toward a capital-gains model, which would tax assets only upon sale by Budget Day 2028.

The reform was introduced after the December 2021 Supreme Court overturned the former system, which relied on hypothetical returns to assess taxes. The court determined that the old approach infringed on property rights, especially during periods of consistently low interest rates.