Netherlands Proposes Market-Value Taxation for Crypto Assets: 36% Rate for Holding

Netherlands Introduces Market-Value Taxation for Crypto Assets

The Dutch House of Representatives has passed a major tax reform that will include cryptocurrencies like Bitcoin in a system where annual market value changes are taxed. A flat rate of 36% will apply, regardless of whether the asset was sold or not.

From Transactions to Holdings: A Paradigm Shift in Europe

This proposal,set to take effect on January 1, 2028, pending Senate approval, represents a significant shift in how European countries approach digital asset taxation - moving away from taxing transactions to taxing the mere act of holding.

Impact on Investors

• Annual reporting of crypto asset value fluctuations will be required
• A flat tax rate of 36% will apply, regardless of individual gains
• Holding assets itself will trigger tax obligations

This change will increase the tax burden of holding crypto assets, but may also encourage investors to manage their holdings more responsibly and focus on long-term growth.