The Netherlands is moving closer to introducing a tax on unrealized capital gains across investments such as stocks, bonds, and cryptocurrencies, a proposal that has sparked growing concern among investors and market participants. Lawmakers argue the measure is necessary to repair flaws in the existing asset tax system, but critics warn it could weaken the country’s investment climate.
The proposed reform targets the Box 3 asset tax regime following court rulings that rejected taxation based on assumed returns. Under the new framework, investors would be taxed annually on actual gains, including paper profits that have not been realized. Government officials acknowledge that taxing only realized gains would be preferable, but say it is not feasible before 2028. Delaying implementation could cost the treasury an estimated 2.3 billion euros per year.
Prominent Dutch crypto analyst Michaël van de Poppe called ;
A broad coalition of parties across the political spectrum supports the plan, citing fiscal pressure and administrative simplicity. However, the proposal offers more favorable treatment for real estate, where taxes are largely due upon sale and costs can be deducted, creating perceptions of unequal treatment among asset classes.
Investors, particularly in digital assets, warn that taxing unrealized gains could force individuals to sell assets to cover tax bills or relocate capital abroad. Critics argue the policy risks capital flight and talent loss, potentially undermining the Netherlands’ reputation as an innovation-friendly economy.
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