Is the Netherlands Taxing Unrealized Crypto Gains? It's Complicated
Dutch lawmakers have approved the Actual Return on Box 3 Act, reforming how the country taxes investment assets such as crypto, stocks, and property. This law, set to take effect in 2028 if passed by the Senate, will shift taxation from a fixed, deemed return to actual realized gains. Box 3 of the Dutch tax system, which covers investments including crypto, currently applies a 36% rate to a fictitious return. Under the new regime, actual returns—realized or unrealized—will be taxed, with losses carried forward but only above a €500 threshold and with no refunds for negative returns. Critics argue that taxing unrealized gains could force investors to sell assets to pay taxes, potentially penalizing successful or long-term investors and exposing them to market volatility. If asset values drop after the end-of-year valuation but before taxes are due, investors may owe tax on gains that no longer exist. Supporters claim the reform aligns taxation more closely with economic reality. Crypto adoption in the Netherlands is high, with 22% of residents having bought crypto and 17% currently holding it.
