Netherlands Approves New 36% Tax on Crypto and Investment Gains

The Dutch House of Representatives (Tweede Kamer) has passed the Wet werkelijk rendement box 3, a major overhaul of how savings and investments are taxed in the Netherlands.

Approved on February 12, 2026, the reform replaces the long-standing system of “assumed” returns with taxation based on actual asset growth, including unrealized gains.

The new framework is scheduled to take effect on January 1, 2028, pending final approval by the Senate (Eerste Kamer).

What Changes Under the New System

The reform targets assets held under “Box 3,” which covers savings and private investments.

Under the new rules:

• Annual taxation of actual returns: Assets such as cryptocurrencies (including Bitcoin and Ethereum), stocks, bonds, and savings will be taxed each year based on their change in value from January 1 to December 31, plus any income earned (dividends or interest).
• Flat 36% tax rate on total annual gains.
• €1,800 tax-free income threshold per person, applied to annual returns rather than total asset value.
• Unlimited loss carry-forward, allowing investors to offset future gains with prior losses.

A key distinction applies to real estate. Investment property (excluding primary residences) will be taxed only upon sale for capital appreciation, though rental income remains taxable annually.

Why the Reform Was Introduced

The overhaul follows Dutch Supreme Court rulings in 2021 and 2024 that declared the previous system, which taxed hypothetical returns rather than real ones, incompatible with fundamental rights.

Supporters argue the reform brings legal certainty and fairness, even if implementation is complex. Opponents raised concerns about administrative burdens and market distortions, particularly for volatile assets.

The bill passed the House with backing from VVD, CDA, D66, and GroenLinks-PvdA, while parties such as PVV and BBB opposed it. Supporters warned that further delays could cost the Dutch treasury approximately €2.3 billion annually.

The Senate is scheduled to discuss procedural next steps on February 24, 2026.

Impact on Crypto Investors

For cryptocurrency holders, the most controversial element is the taxation of unrealized gains.

Because taxes will be based on year-end valuations, investors could face tax liabilities on “paper gains” even if asset prices decline sharply afterward. This creates potential liquidity challenges, particularly for highly volatile digital assets.

To strengthen enforcement, the Netherlands is implementing the DAC8 Directive, which will require crypto service providers to share user transaction data with tax authorities starting in 2026.

Structural Shift in European Tax Policy

The reform places the Netherlands among the first European jurisdictions to fully adopt an annual mark-to-market taxation model for crypto and financial assets. If enacted by the Senate, it would represent a structural change in how digital asset wealth is treated within European tax systems beginning in 2028.

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