The Dutch government has enacted a significant tax reform affecting cryptocurrency holders, introducing a 36% annual tax on a presumed return from their holdings, with a more fundamental shift to taxing actual returns and unrealized gains scheduled for 2028.
Under the current system, which remains in effect until the end of 2027, crypto assets are classified as "other assets" within Box 3 of the Dutch tax code. Taxation is not based on realized profits. Instead, authorities apply a fixed presumed return percentage to the total fair market value of an individual's crypto holdings as of January 1 of each tax year. This calculated yield is then taxed at a flat rate of 36%. A key exemption exists: the first €57,684 per person (doubled for fiscal partners) is not subject to this tax.
This model creates a scenario where investors may owe taxes even in years when the market declines after the January 1 valuation snapshot, as the system ignores actual gains or losses realized later. Staking and mining rewards are treated separately, generally taxed as regular income under Box 1 at the time they are received.
The Dutch House of Representatives has passed the Actual Return in Box 3 Act, which will overhaul this system. Starting January 1, 2028, the Netherlands will move to a capital growth tax model. This new law will tax the actual annual returns on investments, including crypto, stocks, and bonds. Crucially, this includes unrealized capital gains—meaning taxes will be levied on the increase in an asset's value each year, even if it is not sold. The tax rate will remain around 36%, still based on the January 1 valuation.
The reform has drawn criticism from the crypto community, concerned about the cash flow burden of paying taxes on paper gains. The law differentiates asset classes: while crypto and standard investments will be taxed on unrealized gains, real estate and shares in startups will largely continue to be taxed only upon realized profits, though their income (like rent or dividends) is taxed annually.
