Netherlands Proposes 36% Tax on Unrealized Bitcoin Gains

The Dutch House of Representatives has backed a significant tax overhaul that will impose a 36% flat rate on digital asset returns. The proposed regime utilizes a mark-to-market system, taxing annual price fluctuations regardless of whether the assets have been sold. This move is part of the broader Box 3 tax reform aimed at taxing actual investment returns rather than estimated figures. Implementation is currently targeted for January 1, 2028, aligning with new EU-wide crypto reporting requirements. Market experts warn that taxing unrealized gains could trigger capital flight or forced sell-offs to cover tax liabilities. The policy sets a restrictive precedent within the European Union, potentially impacting long-term crypto holders across the region.