Dutch Lawmakers Advance 36% Capital Gains Tax on Crypto

Core Viewpoint - Dutch lawmakers are advancing a significant tax reform that introduces a 36% capital gains tax on various digital assets, including cryptocurrencies, which could impact investor behavior and capital flows in the country [1][3][8]. Tax Proposal Details - The proposed legislation received 93 votes in the House of Representatives, surpassing the 75 votes needed for advancement [2]. - The tax will apply to bank savings, crypto holdings, equities, and returns from interest-bearing instruments, taxing unrealized gains regardless of asset sales [3][8]. - The bill is pending approval from the Dutch Senate and aims for implementation in the 2028 tax year [4][8]. Investor Reactions - Critics express concerns that the tax could lead to capital outflows and the relocation of high-net-worth individuals to countries with more favorable tax regimes [4][5]. - Historical examples, such as France's experience in the late 1990s, are cited to illustrate potential negative impacts on business and investment [5]. - Financial projections indicate that an investor contributing €1,000 monthly over 40 years could see their accumulated wealth significantly reduced from approximately €3.32 million to about €1.885 million due to the proposed tax [6]. Broader Context - The debate surrounding the Dutch tax proposal mirrors similar discussions in other regions, such as the U.S., where tech leaders have opposed wealth taxes [7]. - Supporters of the tax argue it modernizes the taxation framework for financial assets, while opponents warn it may deter long-term investments and harm the Netherlands' attractiveness for fintech and digital asset businesses [7].