Dutch Tax Plan Creates Bitcoin ETF vs Wallet Tax Loophole

The Dutch government has proposed a tax plan that could lead to a two-year split in how Bitcoin is taxed, depending on whether it's held in an exchange-traded fund (ETF) or a private wallet.

The plan, sent to the Dutch parliament on September 29, would tax gains on financial instruments only when they are sold starting in 2028. However, the letter does not specify whether Bitcoin held directly in a private wallet counts as a financial instrument.

This means that an investor holding a Bitcoin ETF at a broker could move to sale-based taxation in 2028, while someone keeping coins in self-custody might remain under annual taxation of unrealized value changes until 2030.

The tax authority, the Belastingdienst, already requires taxpayers to declare Bitcoin and other cryptocurrencies as Box 3 assets. Holdings are valued at the exchange price at 00:00 on January 1, whether the coins sit in a personal wallet, with an exchange or with another party.