The Netherlands is preparing a major change to its tax system. Lawmakers are likely to approve a proposal that would tax both realized and unrealized capital gains, including gains from cryptocurrencies, starting in 2028.
Reports from local sources suggest a parliamentary majority supports the plan. If approved, the policy would apply to a wide range of assets, not just crypto.
How the New Tax Would Work
Under the Netherlands crypto tax proposal, investors would pay tax on paper profits, even if they have not sold their assets. This means gains would be taxed annually based on value increases.
The tax rate would be 36% on gains above €1,800. Lawmakers say the goal is to modernize the country’s wealth tax system and make it more accurate.
Supporters argue the current system relies too much on assumed returns. They believe taxing actual gains creates a fairer approach.
Why Crypto Investors Are Concerned
Crypto users have reacted strongly to the news. Many describe the proposal as financial overreach. They argue that taxing unrealized gains creates pressure to sell assets just to pay taxes.
Volatile markets add another concern. Asset prices can rise one year and fall the next. However, investors may still owe tax on gains that later disappear. Because of this, critics warn the policy could discourage long-term investing and innovation.
Risk of Capital Moving Elsewhere
Several analysts have raised concerns about capital flight. High taxes on unrealized gains may push investors and startups to relocate.
Countries like Portugal and the UAE already attract crypto users with more favorable tax rules. As a result, the Netherlands could lose talent and investment if the proposal moves forward.
Some industry voices say policymakers should focus on balance. They argue governments need revenue but should avoid driving innovation abroad.
A Growing Global Debate
The Dutch proposal reflects a broader global trend. Governments are exploring new ways to tax digital assets as adoption grows.
However, few countries have moved to tax unrealized crypto gains. Because of this, the Netherlands could become a test case for how such policies affect markets.
For now, the proposal remains under discussion. If approved, it would not take effect until 2028. Still, the announcement has already sparked debate.
As Netherlands crypto tax adoption expands, how governments tax digital wealth will remain a key issue worldwide.
