The Netherlands reportedly plan to tax unrealized Bitcoin (CRYPTO: BTC) gains beginning in 2028, when a new asset taxation framework is expected to take effect.
Unrealized Crypto Gains To Be Taxed
Under the proposed reform, the Dutch government would introduce an annual capital gains tax covering both realized and unrealized gains on assets including stocks, bonds, and cryptocurrencies, Bitcoin News stated on X.
The overhaul follows court rulings that declared the current Box 3 tax system unlawful.
Despite widespread criticism, a parliamentary majority is expected to support the plan to avoid an estimated €2.3 billion in annual revenue losses from further delays.
While many parties oppose taxing unrealized gains in principle, the approach is viewed as a practical necessity due to implementation constraints.
Political parties including VVD, CDA, PVV, D66, and GroenLinks-PvdA are expected to back the legislation.
Left-leaning parties have pushed more strongly for taxing unrealized gains and may seek higher rates on larger profits.
Winners and Risks
Real estate investors are expected to benefit under the new system, as costs would become deductible and taxes would generally apply only upon realized gains, though personal use of second homes would face additional levies.
Critics argue the reform could introduce greater complexity rather than simplify the tax code and warn of liquidity risks, as investors may be forced to pay taxes on paper gains without selling assets.
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