- The Dutch Government (Netherlands), which brought the controversial 36% tax on unrealized gains, is forced to reconsider its decision after massive protests.
- The Tax Minister, Eugène Heijnen, pledges to rethink the draft of the law.
- The taxes on unrealized gains apply to cryptocurrency, stocks, bonds, and other assets and were to take effect in 2028.
- Taxation on unrealized gains has been tricky in the past because, unlike realized gains, they aren’t fixed.
- A previous law on “assumed returns was deemed unconstitutional by the Dutch Supreme Court.
Dutch Minister Pledges to Reconsider 36% Tax on Unrealized Gains
On February 13, 2026, the Netherlands introduced a controversial law to tax unrealized gains on assets. The law sought to tax assets such as cryptocurrencies, stocks, and bonds. It was set to take effect in 2028. The law provided only €1,800 in relaxation for those with low gains. The Netherlands has an average annual income of around €48,000.
Interestingly, the law conveniently exempted real estate, where unrealized gains are more concrete because it is less price volatile.
After the draft proposal came out, the law faced massive protests and flak from users worldwide, especially in crypto-based communities, where centralized control of power is highly disliked. Among people from the Netherlands we spoke with, several investors threatened to move their capital out of the Netherlands if such a law were to be imposed.
The protest forced the ministers and the government to rethink the law.
One previous law in the Netherlands was struck down by the Dutch Supreme Court after the judiciary marked it as unconstitutional.
Why Taxing Unrealized Gains is Unethical?
Despite several attempts, countries have not been able to pass laws to tax unrealized gains because gains from assets like crypto and stocks are volatile. Most of these laws are often seen as empty election promises to please a certain low-income votebank. Only a few proposed laws on unrealized gains have moved to the draft stage.
Unrealized Gains cannot be consumed like profits and exist only on paper. The definition itself for unrealized gains is that:
Unrealized gains are those which would be profits, if the assets were to be sold today.
In the definition itself, there is a big condition that the asset must be sold. If the assets are held longer, these gains evaporate.
For a government to tax them would be unethical, because unrealized gains can quickly turn into losses, and any taxes paid on them are unlikely to be refunded.
Countries with Taxes on Unrealized Gains?
Besides the Netherlands, no country implements a direct tax on unrealized gains.
- Netherlands: Proposed a 36% tax on unrealized gains.
- Norway: Taxes net wealth where unrealized gains are included.
- France: Implements an exit tax when individuals leave the country, which includes unrealized gains.
- Switzerland: Implements a wealth tax, which includes unrealized gains.
- Denmark: Utilizes an exit tax rule when a resident leaves the country.
Helpful Tools for Crypto Taxation: Best Crypto Tax Tools in 2026
Frequently Asked Questions
Are unrealized capital gains currently taxed in the Netherlands?
No, the law was supposed to take effect in 2028. The Dutch Supreme Court previously banned such a law, calling it unconstitutional.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
