Netherlands Box 3 Plan Could Tax Crypto and Physical Gold at 36% on Unrealized Gains Every Year - CCN.com

The Netherlands is considering changes to Box 3, its wealth-tax regime, that could affect how crypto and physical gold are taxed. Under the reported plan, these assets would be taxed at up to 36% on unrealized gains each year, meaning holders could owe tax on paper profits even if they haven't sold.

That marks a notable shift in approach. Most tax systems tax capital gains only when an asset is sold, so the tax bill is tied to a realized event. Taxing unrealized gains annually would make the liability recurring, regardless of whether the holder has cash on hand from the asset itself.

For markets, the key questions are whether the proposal becomes law and in what final form. If enacted, it could influence where crypto and gold investors choose to hold or custody assets, and how those markets price in an annual tax drag. The details — valuation methods, thresholds, and any exemptions — will matter as much as the headline rate.