The Government of the Netherlands is rethinking its controversial plan to impose a 36 percent tax on unrealized gains after large-scale protests from investors and the public.
Tax Minister Eugène Heijnen said the government will revisit the draft law amid concerns that the proposal may be unfair and difficult to implement.
The tax, scheduled to take effect in 2028, would apply to cryptocurrencies, stocks, bonds, and other investments, meaning people could be taxed on profits they have not yet actually received.
Critics say this is problematic because asset prices can rise and fall before being sold. The issue is especially sensitive after an earlier Dutch tax system based on estimated returns was struck down by the Supreme Court as unconstitutional.
Netherlands sparks debate with unrealized gains tax proposal
On February 13, 2026, the Dutch government suggested taxing unrealized gains on investments like stocks, bonds, and cryptocurrencies. This rule would go into effect in 2028.
The tax law only gave €1,800 in relief for smaller gains, which seemed low given that the average annual income in the country is about €48,000.
People also asked why real estate was not taxed, especially since it’s easier to figure out how much a property is worth.
The proposal didn’t take long to make people angry, especially in the crypto community, which doesn’t like too much centralized control.
The Dutch investors said they would move their money overseas if the tax passed, and the protests made the government rethink the proposed law.
Why is the law controversial?
However, many nations have attempted, though largely failed, to implement unrealized gain taxes because assets such as cryptocurrencies and stocks tend to fluctuate in value very rapidly.
Unrealized gains are simply the amount of profit that an investor would realize if they sold their asset at the current market price, though they have not yet sold it. Since the money has not been received, it is only “on paper,” and therefore cannot be spent as if it were real income.
When markets are down, such gains could evaporate or even become losses. This makes unrealized gain taxes very contentious, and most drafts never see the light of day because it is only fair that one should not be taxed on income that they may never actually receive.