The Netherlands has passed a significant tax reform that will require crypto investors to pay taxes on unrealized capital gains starting in January 2028. The "Actual Return on Box 3 Act" was approved by the House of Representatives on February 12, 2026, with 93 out of 150 lawmakers voting in favor. The law now awaits final approval from the Dutch Senate.
The reform shifts the taxation system from a "fictitious return" model to one based on actual annual returns. Previously, Dutch crypto holders were taxed on a deemed return calculated annually by tax authorities, regardless of whether gains were realized. Under the new system, the 36% tax rate will apply to actual gains, including those that are paper profits and not yet cashed out.
Jan Scheele, spokesperson for the Blockchain Netherlands Foundation (BCNL), explained the change: "The recent Box 3 legislation primarily shifts the system from taxation based on a fictitious return to taxation based on actual returns. In principle, this brings the system closer to economic reality." The reform follows Supreme Court rulings that found the previous system unlawful.
The new rules include a €1,800 ($2,000) exemption on annual returns. Losses can be carried forward indefinitely to offset future gains, but there is a €500 ($550) threshold before losses qualify, and there will be no refund for negative returns.
The proposal has sparked significant controversy within the crypto community. Critics argue that taxing unrealized gains could force holders to liquidate assets to meet tax obligations, especially problematic given crypto's volatility. Prominent analyst Michaël van de Poppe called the move "beyond insane" on social media, noting that volatility could leave investors with tax bills on gains that later evaporate.
Robin Singh, CEO of crypto tax software company Koinly, described the system as having a "success penalty." He warned: "If you are forced to sell 30% of your holdings just to pay tax on a gain you haven't realized, you lose the 'fuel' for your future growth." Singh also highlighted the risk of price drops after the December 31 valuation date but before the May tax payment deadline, potentially creating a scenario where an investor's portfolio isn't enough to cover a tax bill for gains that no longer exist.
Scheele acknowledged this structural issue: "Short-term price swings between valuation and payment deadlines are effectively borne by the taxpayer," which is "particularly sensitive in highly volatile asset classes such as crypto."
The Netherlands has one of Europe's highest crypto adoption rates, with around 22% of residents having bought crypto at some point and 17% currently holding digital assets according to a 2025 survey. The tax change could significantly impact these investors' strategies and the broader Dutch crypto ecosystem.
