Netherlands Crypto Tax Explained: Are Unrealized Gains Being Taxed?

The Netherlands is introducing a major crypto tax reform that will change how digital assets are taxed from January 2028. Under the new Box 3 rules, investors will be taxed on actual annual returns, including unrealized gains. 

This replaces the previous fictitious return system that assumed a fixed rate of growth. The reform has raised concerns among crypto holders, particularly because tax may be due even if assets are not sold.

Key Takeaways

• From 2028, unrealized crypto gains will be taxed annually in the Netherlands.
• A flat 36 percent rate applies to actual returns with a €1,800 exemption.
• Losses can be carried forward indefinitely but are not refundable.

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Why the Netherlands Is Changing Its Crypto Tax Rules

The Dutch income tax system is divided into three boxes. Box 3 covers savings and investments, including cryptoassets such as Bitcoin and Ethereum.

Until now, Box 3 relied on a deemed return model. The government assumed a notional return on assets each year, regardless of actual performance. Investors could face tax even in years when their real returns were lower than the assumed rate.

Following rulings by the Dutch Supreme Court, lawmakers approved the Actual Return on Box 3 Act. The reform shifts taxation from fictional returns to actual annual performance. From 1 January 2028, tax will be calculated on real gains rather than estimated growth.

Read Also: How to Buy USDT via Visa and Mastercard in Netherlands

How Unrealized Gains Will Be Taxed

Under the new system, the annual increase in value of a crypto portfolio will be included in taxable returns. Investors do not need to sell assets to trigger tax. If a portfolio rises by €10,000 in a year, that increase forms part of the taxable base after applying the €1,800 exemption. The remaining amount is taxed at 36 percent.

This structure creates potential liquidity pressure. Crypto markets are volatile. If prices rise sharply at the valuation date but fall before tax payment is due, investors may still owe tax on earlier gains.

However, losses are recognised. If markets decline, negative returns above €500 can be carried forward indefinitely to offset future gains. There is no refund for loss years.

Read Also: Markets in Crypto-Assets (MiCA) regulation

What This Means for Crypto Investors

For long term holders, planning becomes more important. Annual taxation of unrealized gains may require partial asset sales to meet tax obligations, particularly in strong bull markets. This could affect compounding strategies and portfolio growth.

In weaker markets, the system may be more favourable than the old fictitious return model because actual losses reduce taxable income.

The reform is expected to take effect in 2028, subject to final approval. Until then, the transitional deemed return system remains in place. Once implemented, accurate record keeping, valuation tracking and liquidity management will be essential for Dutch crypto investors.

Read Also: How to Buy Crypto using Open Banking in Europe

Conclusion

From January 2028, unrealized crypto gains will be taxed in the Netherlands under the reformed Box 3 system. A 36 percent rate will apply to actual annual returns after a €1,800 exemption, with losses carried forward but not refunded. 

The change aims to align taxation with real economic outcomes following court rulings against fictitious returns. For investors, understanding valuation rules and managing volatility risk will be key to navigating the new Dutch crypto tax framework.

FAQ

Will unrealized crypto gains be taxed in the Netherlands?

Yes. From 2028, annual increases in portfolio value will be taxed under Box 3 even if assets are not sold.

What is the crypto tax rate?

The rate is 36 percent on actual annual returns after the €1,800 exemption.

Can I offset crypto losses?

Yes. Losses above €500 can be carried forward indefinitely to reduce future taxable gains.

When does the new tax system start?

The reform is expected to begin on 1 January 2028, pending final legislative approval.

Is the current system still active?

Yes. The deemed return model remains in place until the new rules take effect.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal or financial advice. Always consult a qualified tax professional regarding your individual circumstances.