The Dutch government announced plans Tuesday to introduce a capital gains tax starting in 2028, marking a significant shift in how investment income is taxed in the country.
Under the proposed system, investors would pay taxes on gains when they are realized through asset sales, rather than on assumed returns or unrealized increases in value. The Dutch cabinet stated in a letter to the House of Representatives that "the earning capacity of the Dutch economy calls for a way of taxing wealth that facilitates investment."
Most financial instruments would be subject to the new tax beginning in 2028, with remaining assets transitioning two years later. The government has not clarified whether digital assets, including bitcoin, would be taxed starting in 2028 or from 2030.
Current Dutch Crypto Tax System
Bitcoin and other digital assets in the Netherlands are currently taxed based on an assumed annual yield rather than actual or realized profits. Tax authorities presently assume that crypto assets earn a notional 4% return annually, regardless of what investors actually earned.
European Regulatory Context
European regulations governing crypto taxation vary across member states. Since January, the European Union's DAC8 directive has required crypto exchanges to collect detailed user and transaction data and report it to national tax authorities, similar to existing requirements for traditional bank accounts.
Some EU countries maintain more lenient approaches: Germany exempts cryptocurrency held for more than a year, and Portugal similarly exempts holdings after 365 days.
