The Netherlands has abandoned plans to tax unrealized investment gains and will instead introduce a 36% capital gains tax that applies only when assets are sold, starting as early as 2028. According to the latest government announcement, the Dutch government changed course after facing significant backlash from wealthy individuals, business groups and investors who argued the previous proposal would undermine the country's appeal as an investment destination. Prime Minister Rob Jetten and Finance Minister Eelco Heinen wrote in a letter to the Dutch House of Representatives on Tuesday: "The Dutch economy's ability to generate income calls for a method of taxing wealth that facilitates investment." The government's reversal represents a significant shift from the previously approved legislation that would have imposed a 36% tax on paper profits from liquid assets including savings, equities and bonds. This policy shift is projected to cost the state EUR15bn over eight years, which will be funded by reducing the tax-free allowance and encouraging entrepreneur dividends.
Under the revised proposal, the new levy would cover almost all financial instruments, including shares, bonds and options, capturing about 90% of capital gains from 2028. According to the latest government communication, remaining assets would move over in 2030, when the system becomes a full capital gains tax. The letter did not set a rate for the new system, and it did not make clear whether digital assets like bitcoin would fall under the 2028 phase or the 2030 one. This represents a fundamental change from the previous Box 3 system that would have taxed unrealized gains annually, potentially creating tax obligations for crypto holders even without selling their assets. The new 36% capital gains tax will apply to shares, bonds and second homes starting in 2028, with crypto and foreign currencies following in 2030.
The government's minority coalition will need opposition support to pass the new measure, and the government acknowledged an "ambitious timeline for the legislative process." Opposition party JA21 has already called the plans "unacceptable." The Senate's official legislative record shows the House passed the underlying bill in February after it was first submitted in May 2025, with the upper chamber holding a plenary debate on June 30. A motion that would have indicated no objection to withdrawing the legislation was rejected by the Senate on July 7. Prime Minister Jetten stated that he had taken note of the widespread objections and wished to retain investors within the Netherlands, remarking that the administration had addressed concerns raised in both parliamentary chambers concerning the capital gains regime and was offering certainty to Dutch residents about wealth taxation.
The policy reversal received backing from notable figures including Elon Musk, who had previously condemned the prior proposal to tax unrealized profits. Affluent investors globally had condemned the original plan, labelling it in extreme terms. The government plans to move remaining Box 3 assets toward a capital gains system later, which would eventually replace taxation of annual unrealized value changes with taxation when gains are realized. This represents a fundamental shift from the previous Box 3 system that would have taxed unrealized gains annually, potentially creating tax obligations for crypto holders even without selling their assets.
