Dutch Tax Reform in 2028: Taxation of Virtual Assets Is Coming

The Dutch parliament is preparing to make a historic decision on the taxation of unrealized income. Starting in 2028, investors will face a fundamentally new approach to paying taxes on profits not received from the sale of assets. This reform will radically change the rules of the game for owners of cryptocurrencies and traditional securities.

The essence of the tax initiative: how the taxation system will work

The proposed system is known as the “3rd Box Actual Profits Tax Act” and provides for an annual assessment of asset gains. Key feature: the tax rate is set at 36%, which means a significant burden for investors. Holders of Bitcoin and stocks will pay taxes on paper income annually, even if they have not made any purchase and sale transactions. Essentially, this means taxing potential profits, not realized gains.

Why did the parliament make such a decision?

The position of the majority of parliamentarians is clear: the state needs additional revenues. The annual budget loss if the old system were to be maintained would be 2.3 billion euros. The reform is envisaged for implementation in 2028, which will give time for adaptation. However, there is a deeper reason behind this decision.

Background: How the Dutch court provoked the changes

The current initiative was the result of a court decision. A Dutch court has found the government’s previous method of taxation, based on virtual income, to be against the law. The new approach is seen as a fairer and more legally sound way of levying taxes. Despite the obvious shortcomings of the proposal, most deputies see 2028 as a real chance to implement the changes.

The tax reform planned for 2028 is becoming a test for both Dutch tax legislation and investors, who will have to adapt to the new conditions.