Part 5/12:
Annually, the Dutch government estimated a loss of €2.3 billion because of less aggressive, more transparent taxation of realized earnings. To recover this revenue, authorities are now moving toward taxing unrealized appreciations, thus minimizing the opportunities for taxpayers to defer or avoid taxes through strategic timing.
How the Law Works in Practice
The law targets various types of investments, including stocks, bonds, cryptocurrencies, and similar assets. While some business assets are exempted—particularly those involved in active entrepreneurship—passive investments are not. Residents will face a flat 36% tax on their annual paper gains, with a very modest annual €1,800 exemption and some exceptions for losses exceeding €500.