Netherlands to Tax Unrealized Bitcoin Gains Starting 2028

The Netherlands plans to introduce a tax on unrealized Bitcoin gains beginning in 2028, moving to a mark to market system that taxes crypto based on yearly value changes instead of only at the point of sale.

How the Dutch Crypto Tax Plan Works

Under the proposal, gains on paper would be taxed annually, even if the holder never sells. Reports indicate the tax rate could reach 36% on these unrealized gains. Self custody wallets appear to be a direct target under the plan, while coins held at a bank or regulated custodian would only be taxed once sold, creating a clear gap between self-custody and custodial holding.

Why the Policy Is Drawing Criticism

Critics argue the plan is hard to justify given how volatile crypto assets are, since a holder could be taxed on a gain that disappears entirely before it is ever cashed out. The shift could also change how Dutch residents choose to hold their crypto, since self-custody would carry a bigger tax cost than keeping assets on a custodial platform. Investors and exchanges are expected to watch closely for further detail as the 2028 start date approaches.

Elsewhere, trading activity has stayed resilient despite the regulatory headlines out of Europe.