The Dutch Parliament is preparing to vote on a controversial tax reform that would impose a 36% levy on unrealized capital gains beginning in 2028. The proposal, known as the Box 3 Actual Return Tax Law, would require investors to pay annual taxes on the paper appreciation of assets, even if those holdings have not been sold.
Under the plan, assets such as crypto, stocks, and other investment portfolios would be assessed each year based on their market value. If an asset rises in price, the increase would be taxed regardless of whether the investor has realized the gain. Real estate holdings are expected to remain exempt under the current draft.
Impact on Crypto and Long-Term Investment Strategies
The reform follows a Dutch court ruling that struck down the government’s previous method of taxing assumed or “virtual” returns. Lawmakers argue that delaying implementation could cost the state an estimated €2.3 billion annually in lost revenue.
Critics warn that taxing unrealized gains could undermine long-term compounding strategies and create liquidity pressures for investors who may need to sell assets simply to meet tax obligations. Some market observers also caution that higher tax burdens could encourage capital to move toward lower-tax jurisdictions within Europe.
Martin Pelletier said in X post;
The vote is widely seen as a pivotal moment for Dutch fiscal policy, with potential implications for investors, entrepreneurs, and the country’s broader financial landscape.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.