Netherlands Abandons 36% Tax on Unrealized Bitcoin Gains Amid Investor Backlash
The Netherlands has officially abandoned its proposal to impose a 36% tax on unrealized gains from Bitcoin and other cryptocurrencies. This decision follows significant backlash from investors who feared that such a tax could force them to sell assets to cover tax liabilities.
In a letter dated September 29, 2026, Prime Minister Rob Jetten and Finance Minister Eelco Heinen announced a shift in policy, indicating that the government will now tax investment gains only upon realization, starting in 2028. This marks a significant change in the Dutch approach to crypto taxation, moving away from taxing paper profits.
The previous plan was part of a broader reform known as the Actual Return in Box 3 Act, which had initially received approval in February 2026. The reform aimed to tax actual returns on liquid assets, including unrealized gains, which raised concerns about liquidity and the risk of forced sales in volatile markets.
Currently, crypto assets are taxed under Box 3 using a deemed return system, with a projected deemed return of 6.00% for 2026, taxed at the same 36% rate. The reversal of the unrealized gains tax is expected to have implications for the crypto market, particularly as it may influence investor sentiment and market dynamics.
As the proposal is still under parliamentary review, the timeline for implementation remains uncertain. However, if lawmakers decide to lower the tax-free allowance to recover some of the estimated €15 billion revenue impact, smaller investors may face taxation for the first time.
Updated 15:01 UTC
New Developments on Crypto Taxation in Illinois
- Illinois has postponed the implementation of its Digital Asset Tax Act (DATA) by six months, moving the effective date from January 1, 2027, to a possible July 1, 2027.
- DATA imposes a 0.2% tax on digital assets used in exchanges, transfers, or storage services, applicable to brokers serving Illinois customers.
- A $10,000 transfer would incur a $20 tax, regardless of whether the asset's value increased or decreased.
- The tax is projected to generate approximately $60 million in annual revenue for the state.
- Brokers failing to comply with the tax regulations could face Class 3 felony charges, which may result in up to five years in prison and fines of $25,000.
- The delay follows ongoing litigation challenging the law on constitutional grounds, including arguments related to federal preemption.
- This act is the first state-level tax of its kind in the United States, and the delay may influence other states considering similar frameworks.
FAQ
What was the proposed tax rate on unrealized Bitcoin gains in the Netherlands?
The proposed tax rate on unrealized Bitcoin gains was 36%.
Why did the Netherlands abandon the unrealized gains tax?
The Netherlands abandoned the unrealized gains tax due to significant backlash from investors who were concerned about being forced to sell assets to cover tax liabilities.
When will the new tax policy on investment gains take effect?
The new tax policy, which will tax investment gains only upon realization, is set to take effect in 2028.
What is the current tax system for crypto assets in the Netherlands?
Currently, crypto assets are taxed under Box 3 using a deemed return system, with a projected deemed return of 6.00% for 2026, taxed at the same 36% rate.
What are the potential implications of this tax policy reversal for the crypto market?
The reversal of the unrealized gains tax is expected to influence investor sentiment and market dynamics, potentially affecting the overall crypto market.
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