Dutch Crypto Tax Reform Shifts to Actual Returns
- Starting January 2028, the Netherlands will tax actual annual returns on investments, including unrealized crypto gains.
- Investors receive a €1,800 ($2,000) exemption on annual returns, with losses carried forward but not refunded.
- The reform follows Supreme Court rulings against the previous system of taxing deemed or fictional returns.
- The law was approved by the House of Representatives with a vote of 93 out of 150 lawmakers.
This legislative change in the Netherlands aims to align taxation with actual economic activities by moving from fictitious to real returns on investment assets like cryptoassets. The impact on investors will vary based on market conditions and portfolio structures.
In strong bull markets, investors may face higher tax burdens due to taxation on actual gains rather than assumed profits. Conversely, in bear markets or low-yield years, taxes could be lower as negative returns are considered. (Source)
