Dutch investors could soon face a major change in how their wealth is taxed, with cryptocurrency and investment gold potentially becoming subject to annual tax on gains they have not yet realized through a sale.
The proposed Wet werkelijk rendement box 3, or Actual Return Box 3 Act, would overhaul the Netherlands’ Box 3 wealth tax system.
The Dutch House of Representatives approved the proposal on February 12, and it is now being considered by the Senate. The government is targeting January 1, 2028, for the new system to take effect.
The proposed tax rate is 36%, but that does not mean investors would lose 36% of their Bitcoin, gold or other assets each year. Instead, the rate would apply to taxable investment returns, including certain increases in asset values during the year.
The planned system would move away from relying mainly on assumed returns and instead focus more closely on actual returns. These could include income such as interest and dividends, as well as changes in the value of certain assets.
Crypto and Gold Could Face Annual Tax on Value Increases
Crypto investors could be among those most affected by the proposed changes. Under the planned system, annual increases in cryptocurrency values could become taxable even if the investor has not sold the assets.
For example, if a crypto portfolio increases from €100,000 to €150,000 in one year, the €50,000 increase could potentially be treated as taxable income. At a 36% rate, that could mean €18,000 in tax, before considering allowances, losses or other adjustments.
This approach could create a significant difference from the way many investors think about profits. An investor may consider a gain unrealized until the asset is sold, but the proposed Box 3 rules could potentially create a tax obligation before that sale takes place.
Investment gold could face a similar treatment as the Dutch tax authority classifies gold coins held as investments as “other assets” within Box 3 rather than as cash. As a result, increases in the value of investment gold could also fall within the annual accrual-based tax system.
Market Volatility Could Make Tax Bills Harder to Manage
The biggest concern for investors is liquidity. Assets such as Bitcoin and physical gold can rise significantly in value without generating cash that can immediately be used to pay taxes.
Crypto’s volatility makes the issue particularly important. An investor could pay tax after a major price increase, only to see the cryptocurrency fall sharply afterward. This could leave the investor with a large tax bill despite having fewer valuable assets later.
The proposed framework includes provisions allowing losses to be carried forward against future Box 3 income. The government is also examining whether limited backward loss relief could be introduced from 2029.
However, the legislation is not yet final. Changes could still be made before the planned 2028 implementation. For Dutch crypto and gold investors, the proposal highlights a key issue: future tax planning may depend not only on when assets are sold, but also on how much their value changes each year.
