Dutch House Approves Sweeping 36% Capital Gains Tax on Investments and Cryptocurrency

The Dutch House of Representatives has voted to introduce a landmark 36% capital gains tax targeting a broad range of financial assets. The proposal secured 93 votes on February 13, comfortably surpassing the 75-vote majority required for passage. This policy shift signals a significant tightening of Netherlands’ tax framework for wealth accumulation and investment activity.

What Assets Will Face the New Tax

The scope of this taxation initiative is extensive. Individuals holding savings accounts, cryptocurrencies, publicly-traded equities, and interest-bearing instruments will all fall under the new tax regime, regardless of whether these assets generate immediate sales proceeds. The Dutch House’s proposal notably excludes certain categories—startup equity stakes and physical non-investment assets remain exempt from the 36% levy. Authorities designed this structure to preserve incentives for entrepreneurship while focusing the tax burden on passive and liquid investment gains.

Parliamentary Process and Implementation Timeline

Before becoming law, the proposal must clear approval from the Dutch Senate. If the upper chamber endorses the measure, taxpayers should prepare for changes in the 2028 tax year, when the regime takes effect. This extended timeline provides both policymakers and investors time to adjust their financial strategies accordingly.

The Economic Reality for Long-Term Investors

Critics of the legislation raise legitimate concerns about capital migration. They argue the sharp tax rate could incentivize investors to relocate their assets to jurisdictions offering more favorable tax treatment. The potential economic impact proves sobering when examined through concrete examples. An investor contributing 1,000 euros monthly over a 40-year horizon would normally accumulate approximately 3.32 million euros in total returns. Under the 36% capital gains tax, that final figure plummets to 1.885 million euros—representing a reduction of 1.435 million euros, or roughly 43% of projected gains. Such calculations underscore how this Dutch House initiative could fundamentally reshape investment decisions and wealth accumulation patterns across the Netherlands.