Netherlands drops plan to tax unrealized Bitcoin gains after investor backlash

The Dutch government has backed away from a plan that would have taxed investors on Bitcoin gains they never actually cashed in.

In a letter dated September 29, 2026, Prime Minister Rob Jetten and Finance Minister Eelco Heinen proposed taxing investment gains only upon realization, starting in 2028. The earlier approach, a 36% tax on annual returns that would have swept in paper profits, is being abandoned.

The fight centers on Box 3, the part of the Dutch tax system that handles wealth, including liquid assets like Bitcoin. The government had been working on a reform called the Actual Return in Box 3 Act.

That legislation gained prior approval in February 2026. Its core idea was to apply a 36% tax to actual returns on liquid assets, and those returns would have included gains that existed only on paper.

Their concerns focused on liquidity and the risk of forced sales, especially in volatile markets.

The Jetten and Heinen letter framed the shift around a tax system that supports investment without penalizing unrealized appreciation.

Crypto assets currently sit under Box 3 and are taxed using a deemed return. For 2026, that deemed return is set at 6.00%, taxed at a rate of 36%.

There is a cost attached. The projected revenue impact of the reforms is estimated at €15 billion through 2035.