The New 36% Tax Reality Facing Every Dutch Crypto & Stock Investor

On Thursday, the Dutch House of Representatives reluctantly approved a new tax system for Box 3, scheduled to take effect in 2028. Following years of legal disputes, the government is moving away from “estimated” (fictional) profits and will instead begin taxing the actual income generated from your wealth.

How the New System Works

The new law utilizes two different methods depending on the type of assets you own:

• Savings (Actual Interest): You pay tax on the actual interest you receive from your bank.
• Crypto & Stocks (Annual Growth Tax): You pay tax every year on the increase in value, even if you haven’t sold your assets yet. This includes “on-paper” profits.
• Real Estate & Startups (Tax at Sale): For second homes or startup shares, you only pay tax on the profit at the moment you sell or transfer the property. However, annual rental income is still taxed every year.

Practical Example: $100,000 in Bitcoin

Under the 2028 rules, cryptocurrency is taxed based on its value increase throughout the year. Here is how that calculation looks:

1. Start of Year: You own $100,000 in Bitcoin.
2. End of Year: Your Bitcoin is now worth $110,000.
3. Your Profit: You have a “paper profit” of $10,000.
4. Tax Calculation: With a proposed tax rate of 36%:
   • Taxable amount: $10,000 (minus a small tax-free allowance of roughly $1,200).
   • Result: You would owe approximately $3,168 in tax for that year.

The Catch: You must pay this tax even if you do not sell any Bitcoin. You will need to ensure you have enough liquid cash in your bank account to pay the Tax Office.

Why Is This Changing?

The Dutch Supreme Court ruled in 2021 that the previous system was illegal because citizens were being taxed on “fictional” profits they never actually realized. This new law serves as a “bridge” to ensure the state does not lose billions in revenue while attempting to comply with the court’s ruling.

The “Paperwork” Burden

Starting in 2028, millions of savers and investors will need to maintain much more detailed records. You will be required to track the exact value of all your assets on January 1st and December 31st to calculate your actual gains.

A Temporary Solution

Hardly any political party is fully satisfied with this law; most view it as a “stepping stone.” Parliament hopes for a more refined system by 2028 that avoids taxing “on-paper” gains for stocks and crypto. However, that will only be possible if the Tax Office can update its outdated IT systems in time.

Summary: From 2028, you pay tax on what you actually earn. Crypto and stocks are taxed annually on value growth; real estate is taxed on the profit made at the time of sale.