Netherlands Aims to Tax Unrealized Crypto Gains with 2028 Implementation

The Netherlands is moving to introduce taxes on unrealized gains from cryptocurrency investments. The country's parliament recently passed the Box 3 Actual Return Tax Act, which aims to tax actual returns including interest and dividends, as well as changes in asset values.

Under the amendment, liquid assets such as cryptocurrencies will be taxed using a capital gains accrual method. This means that investors can expect to be taxed on the difference if an asset's price rises between the beginning and end of the year, even if they do not sell it.

If prices fall and generate losses, those losses could be carried forward and offset against gains in future years. The tax amount would be determined based on annual changes in value, regardless of where or how the assets are held.

The amendment is expected to take effect in 2028 if it passes the Senate. The Dutch parliament has pursued this revision after criticism that the current tax system does not properly reflect taxpayers' actual returns.