Dutch government plans capital gains tax on bitcoin from 2028

What happened

The Dutch government announced on Tuesday that it plans to introduce a capital gains tax starting from 2028, Bitcoin Magazine reported. A letter from the cabinet to the House of Representatives said gains on investments would be paid when they are realized, rather than through levies on assumed returns or unrealized increases in value. The letter added that most financial instruments would be taxed from 2028 while remaining assets would transition two years later.

Today, bitcoin and digital assets in the Netherlands are taxed based on an assumed annual yield rather than actual or realized profits. The tax authority assumes assets earned a notional 4% return, regardless of what the holder actually earned.

A separate track is further along. The Netherlands has moved closer to taxing unrealized cryptocurrency gains from 2028 as part of an overhaul of its Box 3 system, although a new government proposal could eventually move crypto to taxation at the point of sale. The proposed Actual Return Box 3 Act would base tax on income and changes in the value of assets, with the framework scheduled to begin on Jan. 1, 2028. Cryptocurrencies such as Bitcoin generally fall under Box 3, which covers savings and investment assets held by Dutch taxpayers. The House of Representatives approved the bill on Feb. 12 and sent it to the Senate, where a final vote has yet to take place.

Why it matters

For crypto holders, a rise in the value of Bitcoin or another digital asset could generate a tax liability even when the investor has not sold the tokens. Under the bill the House approved, most assets would be subject to a capital growth tax, known in Dutch as a vermogensaanwasbelasting. Real estate and shares in qualifying startups and scale ups are treated differently in the legislation, and crypto was not included in that exception.

The government says decreases in asset values can be offset against gains in later years, allowing negative returns to be carried forward. The process is not finished, however: the Senate has debated the bill but has not held a final vote, so the design and timing could still change.

What the data shows

The current system does not look at what a holder actually earned. The tax authority assumes assets earned a notional 4% return, and bitcoin and digital assets are taxed on an assumed annual yield rather than actual or realized profits.

Under the proposed framework, the new Box 3 system is scheduled to begin on Jan. 1, 2028. The House of Representatives approved the bill on Feb. 12 and sent it to the Senate.

Background

Tax rules for crypto in Europe are mixed, and on the whole stricter than in the U.S., according to Bitcoin Magazine. Not every country in the bloc takes a strict approach: Germany still exempts crypto held for more than a year, and Portugal does the same after 365 days.

What is still unclear

• Whether digital assets would be taxed from 2028 or from 2030 is not settled in the cabinet letter. The letter said remaining assets would transition two years later, but it was not clear which date applies to crypto.
• The Senate has debated the Box 3 bill but has not held a final vote, so the final rules could still change.
• A newer government proposal could eventually move crypto to taxation at the point of sale instead of on annual value changes.

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