The Netherlands is moving closer to taxing unrealized gains on stocks, bonds and cryptocurrencies, a shift that has alarmed investors and crypto users who warn the policy could push money and talent out of the country while reshaping how wealth is taxed.
Lawmakers push ahead after court ruling
Dutch lawmakers are preparing to overhaul the country’s Box 3 tax regime after courts struck down the current system for relying on assumed returns rather than real profits. The proposed reform would require investors to pay tax each year on both realized and unrealized gains, even if assets are not sold.
During fresh debates in the House of Representatives, caretaker State Secretary for Taxation Eugène Heijnen faced more than 130 questions. While many lawmakers flagged concerns, most signaled support, citing the risk of losing an estimated 2.3 billion euros in annual revenue if reforms are delayed further.
Broad political backing, with carve-outs for property
Support for the bill spans much of the political spectrum. Parties including the VVD, CDA, JA21, BBB and PVV are expected to vote in favor, alongside left-leaning groups such as D66 and GroenLinks–PvdA, which argue the system is simpler to run and protects public finances.
The changes would treat asset classes differently. Stocks, bonds and cryptocurrencies would face annual tax on paper gains, while real estate investors would be allowed to deduct costs and pay tax only when profits are realized. Second homes, however, would face an extra levy tied to personal use.
Crypto investors warn of an exodus
The proposal has drawn sharp criticism from crypto investors, who say taxing gains before they are realized could dramatically raise annual tax bills and drive residents abroad. Analyst Michaël van de Poppe called the plan “insane,” arguing it would accelerate capital flight.
Others echoed the concern, warning the policy could become a flashpoint for broader opposition to wealth taxation. With implementation not expected before 2028, the debate is now shifting from technical design to whether the Netherlands risks losing investors in the process.