Dutch lawmakers have officially approved the Actual Return in Box 3 Act, introducing a 36% tax on investment returns from cryptocurrencies, including both realised and unrealised gains. The legislation, set to take effect on January 1, 2028, applies annually, meaning that investors in Bitcoin, Ethereum, and similar digital assets will owe taxes even if they do not sell their holdings. This represents a significant shift in the Dutch approach to cryptocurrency taxation and has already triggered discussions about potential changes in market and investor behavior.
The law exempts certain asset classes, such as real estate and startup shares, from mark-to-market taxation, a move that has drawn criticism from crypto advocates who see the measure as unfairly targeting digital assets. Experts warn that taxing paper gains could pressure investors to liquidate holdings prematurely or consider relocating to jurisdictions with more favorable rules. The Dutch government, however, maintains that the tax is essential to prevent substantial revenue losses and to create a more consistent framework for high-value investments.
The legislation does include relief provisions, such as a tax-free annual return for small savers and unlimited loss carry-forward above certain thresholds, allowing investors to offset downturns against future gains. Nonetheless, many in the crypto community argue that taxing unrealised gains remains problematic, as it introduces liquidity pressures on holders without actual sales taking place. Analysts suggest this could influence portfolio strategies and reshape the Dutch crypto market over the coming years.
Crypto adoption in the Netherlands has been growing rapidly. Indirect holdings by Dutch companies, institutions, and households reached $1.42 billion by October 2025, a sharp increase from $96 million in 2020. Market observers note that the government’s long-term goal is to move toward a realised gains model, but officials argue that annual taxation of paper gains is currently necessary to safeguard public finances.
From an investment and regulatory perspective, the law signals a growing willingness of European governments to regulate digital assets in line with traditional finance. For Bitcoin and Ethereum investors, this new tax environment could impact strategies, trading behavior, and cross-border investment flows. As the Netherlands positions itself as both a crypto-friendly and fiscally responsible market, the coming years will test how investors adapt to balancing growth opportunities with new fiscal obligations.
