The Dutch government has abandoned plans to tax unrealized gains on investments, choosing instead a capital gains tax that would apply only when assets are sold, starting as early as 2028.
A retreat from taxing paper profits
Under the previous proposal, investors would have paid an annual 36% tax on paper profits from liquid assets such as savings, equities and bonds.
For bitcoin holders, a system like that would have meant a yearly tax bill on unrealized gains, even if they never sold a single coin.
The government changed course after a backlash from wealthy individuals, business groups and investors, who argued the plan would undermine the country’s appeal as an investment destination.
Prime Minister Rob Jetten and Finance Minister Eelco Heinen wrote in a letter to the Dutch House of Representatives on Tuesday:
“The Dutch economy’s ability to generate income calls for a method of taxing wealth that facilitates investment.”
Unclear timing for bitcoin
The new levy would cover almost all financial instruments, including shares, bonds and options, capturing about 90% of capital gains from 2028.
Remaining assets would move over in 2030, when the system becomes a full capital gains tax.
The letter did not set a rate, and it did not make clear whether digital assets like bitcoin would fall under the 2028 phase or the 2030 one.
Parliament still has to sign off
Jetten’s minority coalition will need opposition support to pass the measure, and the government acknowledged an “ambitious timeline for the legislative process.”
Opposition party JA21 has already called the plans “unacceptable.”
Stef van Weeghel, professor of international tax law at the University of Amsterdam, said:
“It’s not a done deal, though my hunch is that it’s highly likely [to pass], perhaps [with] some tweaks here and there.”
