The Netherlands is set to implement new tax regulations that will impose taxes on unrealised gains from Bitcoin and other assets beginning January 1, 2028. This significant policy shift means that investors could be liable for taxes based on the appreciation of their holdings, even if they have not executed any sales.
The new system, known as Wet werkelijk rendement Box 3, was established by the Dutch parliament and will enforce a flat tax rate of 36% on positive net returns exceeding a €1,800 threshold per individual. This reform aims to create a more accurate taxation model by evaluating the real performance of assets rather than relying on government-set estimates.
Under this revised approach, the value of a person”s investments will be assessed at both the start and end of the year, with any income generated during that timeframe also factored into the calculations. Consequently, investors could find themselves taxed on both realised profits and unrealised gains, which are merely theoretical increases in asset value.
This forthcoming change has raised eyebrows, particularly among crypto investors, as it could lead to tax liabilities triggered by market fluctuations rather than actual sales. Given the inherent volatility of Bitcoin and other digital currencies, a rise in asset value by year”s end could result in a tax obligation, despite the investor not having liquidated any holdings or received cash from those gains.
The motivation behind this overhaul stems from a court ruling that deemed the previous Box 3 tax system unfair, as it relied on assumed returns that did not accurately reflect individual investment outcomes. Proponents of the new model argue that it enhances fairness, particularly for investors whose actual returns have not aligned with previously assumed figures.
As the government prepares for these changes, there are concerns regarding the potential liquidity challenges for long-term holders of Bitcoin. Critics fear that the requirement to pay taxes on paper gains could compel investors to liquidate assets, impacting their investment strategies.
With the introduction of this new tax system, the Netherlands is positioning itself to align its tax policies with modern investment behaviors, particularly as households increasingly mix traditional assets with cryptocurrencies. The implications for Bitcoin holders and the broader crypto market will be closely monitored as 2028 approaches.
