The Dutch House of Representatives has passed the Actual Return in Box 3 Act, imposing a flat 36% tax rate on actual returns from savings and investments beginning January 1, 2028. The law explicitly covers cryptocurrencies, taxing both realized and unrealized gains on assets like Bitcoin and Ethereum, meaning paper gains are taxable even if the assets are not sold.
36% Rate Hits BTC and ETH Paper Gains
Under the new system, Dutch investors owe tax on annual increases in asset value, not just income received. For instance, if a crypto portfolio rises by €10,000 ($11,850) in a year, that paper gain is treated as taxable income even without a sale. In contrast, real estate and qualifying startup shares are taxed only upon sale, exempt from this annual mark-to-market treatment.
This disparity has alarmed crypto holders, who argue the regime could force them to liquidate assets just to cover tax bills. Critics say many may consider relocating to more favorable jurisdictions. The government acknowledged liquidity risks in its explanatory memorandum but defended the policy as necessary to prevent billions in lost revenue.
Exemptions and Loss Carry-Forward Fail to Calm Critics
To soften the blow, the law introduces a tax-free annual return of $2,130 for small savers and unlimited loss carry-forward for net losses above $590. Yet crypto advocates contend these measures do not address the core problem of taxing gains that exist only on paper.
Data from De Nederlandsche Bank shows indirect crypto investments by Dutch entities reached $1.42 billion by October 2025, up from $96 million in 2020. Direct crypto holdings by the financial sector stood at $134 million in Q3 2025. While just 0.03% of total Dutch securities holdings, the rapid growth underscores the sector's rising significance — and the potential impact of the new tax regime.
The Dutch approach of taxing annual portfolio value changes, including crypto, is unusual by continental standards. Officials say the long-term goal is a realized capital gains model, but taxing unrealized crypto gains is currently seen as the only viable option to safeguard public finances.