Netherlands Weighs Taxing Unrealized Crypto Gains by 2028

The proposed Actual Return Box 3 Act seeks to replace the existing system of notional returns with a framework based on actual performance. Under this model, the Dutch tax authority would calculate annual wealth changes, meaning price appreciation in digital assets could trigger tax liabilities before a liquidation event. While the House of Representatives approved the bill in February, it currently awaits a final vote in the Senate, leaving the precise implementation of these rules in flux.

Government officials have acknowledged the volatility of digital assets, noting that investors could face significant tax bills in one year followed by substantial losses in the next. To mitigate this, the legislation includes provisions allowing taxpayers to carry forward negative returns to offset future gains. However, crypto assets currently lack the exemptions granted to real estate or shares in startups, which are generally taxed only upon realization.

Looking ahead, the government is exploring a broader transition toward a capital gains model for all financial instruments. Should this shift occur, it would eventually align crypto taxation with that of conventional assets, triggering tax only when a sale occurs. These discussions coincide with the implementation of the EU’s DAC8 directive, which mandates that service providers share transaction data with authorities, granting the Dutch tax office greater visibility into individual holdings and making accurate reporting essential for compliance.