Dutch Government Abandons Plan to Tax Unrealized Bitcoin Gains

The Dutch government has reversed its plan to tax Bitcoin investors on unrealized gains. The initial proposal, part of the Actual Return in Box 3 Act, would have applied a 36% tax to annual returns on liquid assets, including those that existed only on paper. This move sparked opposition from investors and business groups who feared it could lead to forced sales and liquidity issues.

The government's decision comes after Prime Minister Rob Jetten and Finance Minister Eelco Heinen proposed a new approach in a letter dated September 29, 2026. They suggested taxing investment gains only upon realization, starting in 2028. This change aims to create a tax system that supports investment without penalizing unrealized appreciation.

The current deemed-return system for crypto assets under Box 3 will remain in place until the new law takes effect in 2028. The projected revenue impact of the reforms is estimated at €15 billion through 2035, which may be partially offset by lowering the tax-free threshold.