Netherlands Proposes 36% Capital Gains Tax on Crypto and Savings, Sparking Investor Exodus Fears

In a move that has sent shockwaves through the Dutch financial and crypto communities, lawmakers in the Netherlands have taken a bold step toward reshaping how digital assets and investments are taxed. On Thursday, the country’s House of Representatives voted to advance a controversial piece of legislation that would introduce a 36% capital gains tax on savings, most liquid investments, and—most notably—cryptocurrencies. The proposal, which passed with a comfortable majority of 93 votes, has ignited fierce debate over its potential impact on investor behavior, capital flight, and the Netherlands’ reputation as a hub for fintech innovation.

The Tax That Targets Unsold Profits

If adopted, the measure would cast a wide net, applying to bank savings, crypto holdings, most equities, and returns generated from interest-bearing instruments. What sets this proposal apart—and has drawn the most ire—is its approach to unrealized gains. Under the new rules, investors could be taxed on profits they haven’t even locked in by selling their assets. This means that even if you hold onto your Bitcoin or stocks, you could still face a hefty tax bill based on their paper gains.

The Dutch Senate must still approve the bill before it can become law, with implementation targeted for the 2028 tax year. However, the reaction from investors has been swift and overwhelmingly negative. Critics argue that the policy risks pushing wealth out of the country, with high-net-worth individuals potentially relocating to jurisdictions with lighter tax regimes—especially within the European Union, where cross-border movement is relatively straightforward.

Historical Precedent and Investor Backlash

Entrepreneur Denis Payre pointed to historical precedent, noting that France experienced a wave of business departures after imposing similar policies in the late 1990s. Crypto analyst Michaël van de Poppe was even more blunt, calling the plan “deeply misguided” and predicting significant relocation by investors. In a viral tweet, van de Poppe declared, “The Netherlands has gone insane. The government wants to tax unrealized gains on Bitcoin from 2028 onwards. I simply don’t understand why people are blindly accepting this and not going all-in to demonstrate against this particular law.”

Financial projections circulating among market participants illustrate the concern. According to data shared by Investing Visuals, an investor starting with €10,000 and contributing €1,000 monthly over 40 years could accumulate roughly €3.32 million without the tax. Under the proposed 36% levy, the ending value would drop to about €1.885 million—a reduction of roughly €1.435 million. These numbers have fueled fears that the tax could discourage long-term investment and weaken the country’s position as a destination for fintech and digital asset businesses.

Echoes of Global Debates

The debate in the Netherlands echoes similar disputes elsewhere. In the United States, technology leaders and crypto industry figures pushed back strongly against California’s proposed wealth tax on billionaires, with some entrepreneurs openly discussing relocation. While supporters argue the Dutch plan modernizes taxation across financial assets, opponents say it could have unintended consequences, including capital flight and a loss of competitiveness in the global digital asset market.

Crypto Holdings Surge, But Remain Niche

As reported, Dutch exposure to cryptocurrency through financial securities has grown rapidly over the past five years, reaching about €1.2 billion by October 2025, according to De Nederlandsche Bank (DNB). The increase largely reflects rising prices of major digital assets rather than a surge of new investor money. Holdings stood at roughly €81 million at the end of 2020, showing how valuation gains have expanded crypto-linked investments across households, institutions, and companies.

Despite the jump, direct ownership of cryptocurrencies remains relatively limited for many investors. Even with the growth, crypto securities represent only about 0.03% of the Netherlands’ overall investment market, indicating traditional assets still dominate portfolios. Last year, Dutch crypto firm Amdax raised €30 million ($35 million) to launch Amsterdam Bitcoin Treasury Strategy (AMBTS), a dedicated Bitcoin treasury company that plans to accumulate up to 1% of the total BTC supply, or roughly 210,000 Bitcoin. The firm’s ambitious plans underscore the growing interest in digital assets, even as regulatory uncertainty looms.

The Senate’s Crucial Decision

The Senate’s decision will determine whether the Netherlands becomes one of Europe’s strictest crypto tax regimes. For now, the proposal has ignited a firestorm of debate, with investors, entrepreneurs, and industry experts weighing in on its potential consequences. As the country grapples with how to modernize its tax system in the age of digital assets, the outcome of this legislation could have far-reaching implications—not just for Dutch investors, but for the global crypto ecosystem as a whole.

Tags: Netherlands crypto tax, 36% capital gains tax, unrealized gains tax, Dutch crypto regulation, investor exodus, capital flight, Bitcoin tax, fintech innovation, Dutch Senate, digital asset taxation, Amdax Bitcoin treasury, European crypto regulation

Viral Sentences:

• “The Netherlands has gone insane. The government wants to tax unrealized gains on Bitcoin from 2028 onwards.”
• “I simply don’t understand why people are blindly accepting this and not going all-in to demonstrate against this particular law.”
• “This tax could discourage long-term investment and weaken the country’s position as a destination for fintech and digital asset businesses.”
• “Investors warn that higher-net-worth individuals could relocate to jurisdictions with lighter tax regimes.”
• “The amount of tax being paid each year could force many to leave the country.”
• “France experienced a wave of business departures after imposing similar policies in the late 1990s.”
• “The Dutch plan modernizes taxation across financial assets, but opponents say it could have unintended consequences.”
• “Crypto securities represent only about 0.03% of the Netherlands’ overall investment market, indicating traditional assets still dominate portfolios.”
• “Amdax’s ambitious plans underscore the growing interest in digital assets, even as regulatory uncertainty looms.”
• “The Senate’s decision will determine whether the Netherlands becomes one of Europe’s strictest crypto tax regimes.”

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