Netherlands to Tax Unrealized Bitcoin and Stock Gains Starting 2028

TLDR:

• Dutch parliament will tax unrealized gains on stocks, bonds, and Bitcoin annually starting 2028. 
• Treasury loses €2.3 billion yearly under current system, forcing lawmakers to support the reform. 
• Real estate investors benefit with expense deductions and taxation only on realized profits. 
• MPs criticize the system’s complexity despite annual promises to simplify tax regulations. 

The Dutch parliament is moving forward with controversial tax reforms that will require investors to pay annual taxes on both realized and unrealized capital gains starting in 2028. 

The proposed changes to the Box 3 asset tax system have sparked concerns among cryptocurrency and stock market investors. 

Despite widespread criticism, a majority of parliamentarians appear ready to support the legislation due to mounting fiscal pressures.

Parliamentary Support Despite Reservations

The Tweede Kamer debated the Box 3 tax modifications on Monday, with members submitting over 130 questions to caretaker State Secretary Eugène Heijen for Taxation. 

Most parliamentarians expressed doubts about the proposal’s framework. However, several major parties indicated they would vote in favor of the changes. The decision stems primarily from financial necessity rather than enthusiasm for the policy.

The current delay in implementing a new system costs the treasury approximately €2.3 billion annually. This budget shortfall has created urgency among lawmakers to pass reforms quickly. 

Political parties including VVD, CDA, JA21, BBB, and PVV have reluctantly agreed to support the bill. Their backing ensures the legislation will likely pass despite concerns about its practical implementation.

D66 and GroenLinks-PvdA offered more enthusiastic support for the measure. These parties favor taxing unrealized gains as a matter of principle. 

GroenLinks-PvdA MP Luc Stultiens explained the rationale, stating the approach “won’t lead to billions in budget losses and is easier to implement.” 

The left-wing coalition also advocated for higher tax rates on individuals with substantial capital gains.

The proposed system emerged after court rulings deemed the previous Box 3 framework unlawful. Judges determined the government incorrectly based taxes on fictitious returns rather than actual gains. 

This legal challenge forced policymakers to redesign the entire structure. The 2028 deadline represents the earliest feasible date for launching the revised system.

Real Estate Benefits and System Complexity

Real estate investors will see advantages under the new framework compared to current rules. Property owners can deduct expenses from their taxable profits moving forward. 

Additionally, they face taxation only when profits are realized through sales or other transactions. The government will impose an extra levy on personal use of second homes.

Stock, bond, and cryptocurrency investors face less favorable treatment under the changes. These investors must pay annual taxes on paper gains even without selling their holdings. 

The requirement to tax unrealized returns represents the most contentious aspect of the proposal. State Secretary Heijnen acknowledged the government prefers taxing only realized gains but cannot achieve this by 2028.

ChristenUnie MP Peter Grinwis criticized the reform’s administrative burden during parliamentary discussions. 

He questioned the policy direction, asking, “We say every year that it should be simpler, but we do the opposite. So much complexity, are we really going to inflict this on our country?” His remarks captured widespread concerns about the system’s practical implementation.

The debate has intensified among cryptocurrency advocates who view the policy as particularly burdensome. One critic noted that “the government wants to tax unrealized gains on Bitcoin from 2028 onwards,” expressing disbelief at public acceptance. 

Social media discussions reflect frustration with the government’s approach to digital asset taxation. Critics argue the system punishes long-term investors and may drive capital out of the Netherlands.