Bitcoin and Ethereum gains face new crypto tax under Dutch law
Critics warn the new law may force crypto holders to sell assets to cover taxes, while some exemptions provide limited relief for small investors.
Dutch lawmakers have approved a new tax law that will impose a 36% levy on actual investment returns, including both realised and unrealised gains from cryptocurrencies such as Bitcoin and Ethereum.
The law, called the Actual Return in Box 3 Act, takes effect on 1 January 2028 and applies annually, meaning investors will owe tax even if assets are not sold.
Real estate and startup shares are exempt from mark-to-market taxation, raising concern among crypto investors. Critics say taxing paper gains may force investors to sell assets or consider moving to more favourable jurisdictions.
The government defended the measure as essential to prevent significant revenue losses.
The legislation includes some relief measures, such as a tax-free annual return for small savers and unlimited loss carry-forward above certain thresholds, allowing investors to offset downturns against future gains.
Despite these provisions, many crypto advocates argue that taxing unrealised gains remains problematic.
Crypto adoption in the Netherlands is growing rapidly. Indirect holdings by Dutch companies, institutions, and households reached $1.42 billion by October 2025, up from $96 million in 2020.
Officials say the long-term goal is to move towards a realised gains model, but annual taxation of paper gains is currently seen as necessary to safeguard public finances.
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