Dutch Government Plans Capital Gains Tax on Bitcoin From 2028

Dutch residents may soon face taxation on profits from bitcoin sales.

The government announced on Tuesday it intends to introduce a capital gains tax in 2028.

Under the proposal, investment gains would be taxed only upon realisation, moving away from levies on hypothetical returns or unrealised price increases, according to a letter sent by the Dutch cabinet to the House of Representatives.

“The earning capacity of the Dutch economy calls for a way of taxing wealth that facilitates investment,” the letter stated.

Most financial instruments would become subject to the tax from 2028, the document added, with remaining assets transitioning two years later. The letter did not specify whether digital assets would fall under the 2028 or 2030 timeline.

Currently, bitcoin and other digital assets in the Netherlands are taxed on an assumed annual yield rather than actual or realised profits. The tax authority presumes a notional 4% return on assets, irrespective of actual earnings.

Across Europe, crypto and tax regulations vary but are generally stricter than in the United States.

Since January, the European Union's DAC8 directive has required crypto exchanges to gather comprehensive user and transaction data and submit it to national tax authorities, mirroring reporting requirements for traditional bank accounts.

Nevertheless, not all EU member states apply strict rules: Germany keeps crypto held for over one year tax-free, as does Portugal after 365 days.