- Dutch finance minister says proposed 36% asset tax cannot proceed as drafted
- Plan would tax unrealized gains on crypto, stocks, and savings starting 2028
- Lawmakers now considering a shift toward a capital-gains-on-sale model
Dutch Finance Minister Eelco Heinen has announced that the proposed overhaul of the Box 3 wealth tax regime cannot move forward in its current form. Speaking to RTL Nieuws, Heinen acknowledged that “something simply went wrong” and confirmed that amendments are necessary.
The proposal had already passed the House but faced growing resistance in the Senate and among investors. Heinen has begun consultations with his State Secretary and plans to revisit the legislation with both chambers. It remains unclear whether lawmakers will partially revise the framework or rewrite it entirely.
A 36% Tax on Unrealized Gains
The planned system, scheduled to take effect in 2028, would impose a 36% levy on asset appreciation. That includes unrealized or “paper” gains on savings, equities, bonds, and digital assets such as cryptocurrency.
Under the proposal, investors would owe taxes on increases in portfolio value even if assets were not sold. Real estate and startup shares would largely be taxed upon sale, though recurring income like rent and dividends would still be taxed annually. Crypto holders would face the same treatment as traditional investors.
Liquidity and Capital Flight Concerns
Critics argue that taxing unrealized gains creates liquidity risks. Investors could be forced to sell assets to cover tax obligations, potentially triggering capital outflows or market distortions. This concern has been particularly acute among crypto investors, whose holdings can fluctuate significantly in value year to year.
Opposition within Parliament led to a shortening of the review period from five years to three. Lawmakers have also signaled interest in transitioning toward a traditional capital gains system, where taxes apply only when assets are sold. A potential shift could be outlined by Budget Day 2028.
Legal Backdrop and Reform Origins
The overhaul follows a December 2021 ruling by the Dutch Supreme Court, which struck down the previous Box 3 system. The earlier model relied on hypothetical returns rather than actual gains, a method the court found incompatible with property rights, especially during prolonged low-interest-rate environments.
The current reform was intended to correct that issue by taxing actual appreciation. However, the inclusion of unrealized gains has created new controversy and political friction.
What Comes Next
With the finance minister acknowledging flaws in the draft, the Box 3 framework is now uncertain. A move toward a realized capital gains model appears increasingly likely, though negotiations remain ongoing.
For crypto investors in the Netherlands, the outcome will determine whether future taxation depends on asset growth alone or on actual sales. The coming revisions will shape how digital assets are treated within the broader investment landscape.
