Netherlands pushes to tax unrealised gains on stocks and crypto, faces risk of capital flight

As the Netherlands moves to tax unrealised gains (mark-to-market gains) on financial assets such as stocks and virtual assets (cryptocurrencies), signs are emerging that investors in the country may start moving abroad.

On the 24th, crypto-focused outlet Cointelegraph, citing local media NL Times, reported that the Dutch parliament is continuing discussions on a reform plan for the asset tax regime known as “Box 3,” and that many parties are taking a favourable stance toward passing the bill.

The proposal centres on levying tax each year when valuation gains arise from price increases, even if financial assets such as stocks, bonds and virtual assets have not actually been sold. The move follows a court ruling that the existing system—under which taxes were levied based on a deemed rate of return—was unconstitutional.

Authorities estimate that if implementation is delayed, annual tax revenue losses of about €2.3 billion (about 3 trillion won) could result, and have said further delays would be difficult given fiscal conditions. The reform is reportedly backed not only by right-leaning parties such as the People’s Party for Freedom and Democracy (VVD), the Christian Democratic Appeal (CDA), the Farmer–Citizen Movement (BBB) and the Party for Freedom (PVV), but also by left-leaning parties including Democrats 66 (D66) and the GreenLeft–Labour Party (GroenLinks–PvdA).

Meanwhile, investors and the crypto industry are voicing strong opposition. Crypto analyst Michaël van de Poppe criticised the plan, saying, “A system that taxes unrealised gains is an unrealistic measure that could sharply increase annual tax burdens and drive investors away,” adding, “It’s not surprising that people are leaving the country.”