With Bitcoin reaching a new all-time high and the new US president bringing out his own “meme-coin”, many Dutch people are becoming interested in cryptocurrencies (again). But with the annual income tax just around the corner, you might wonder: how do crypto taxes work in the Netherlands?
Well, we hate to be the bearers of bad news, but when it comes to taxing cryptocurrency, the Netherlands is among the strictest countries in the world.
How strict, you ask? As Crypto-Insiders writes, a recent study by HelloSafe has ranked the Netherlands in the top 5 globally for the highest crypto tax rates.
But what exactly does this mean for Dutch crypto investors? Let’s break it down.
Crypto taxation in the Netherlands
Whether you’re using cryptocurrencies as a way to diversify your investment portfolio or to have fun on one of many crypto gok sites, one thing is certain: you’ll pay a tax rate of 36% on a presumed annual return of 6.44%.
“Presumed return?” I hear you ask — and yes, you read that right. In the Netherlands, your investments are taxed on an estimated profit rather than the actual value of your assets. This counts both for shares in the stock market and cryptocurrency.
With this legislation, the Netherlands is the country with the fifth strictest crypto taxation laws in the world. Check out the top five:
- Denmark with tax rates ranging from 37% to 52%.
- Iceland with tax rates between 40% and 46%.
- Finland with tax rates ranging from 30% to 34%.
- Ireland with a flat tax rate of 33%.
- The Netherlands with a 36% tax rate on a presumed return of 6.44%.
Perhaps not surprisingly, European countries dominate this list, with taxation policies that are often stricter than those in other parts of the world.
Many countries tax crypto outside of Europe based on actual income, which can lead to higher taxes for wealthier investors but may benefit those with lower incomes.
That being said, there are also some European countries that are true tax havens for crypto traders.
Crypto tax paradises
If you want to make the most of your crypto gains, you may want to consider moving to a country where crypto profits go untaxed.
In Europe, these include Switzerland, Luxembourg, Germany, Cyprus, and Malta. In these nations, crypto may only be subject to wealth tax under certain conditions.
For example, in Germany, you only have to pay taxes on your crypto if you hold it for less than a year before selling. Similarly, crypto gains in Luxembourg are tax-free as long as you have been holding your shares for more than six months.
In North America, countries like Canada and the United States take a progressive approach to taxing cryptocurrency, taxing it based on income. Australia follows a similar model, where tax rates depend on earnings.
So, what does this mean for Dutch investors?
For crypto investors in the Netherlands, it’s crucial to understand how the tax rules impact your earnings. So, let’s get into it a little more.
In the Netherlands, crypto gains are taxed under box 3, which is a collective name for everything you can count as your wealth. This includes savings, debts, stocks, and cryptocurrencies.
When filing your tax return, the government looks at how big your total power is in box 3. Some of this box 3 wealth is so-called “tax-free capital”, meaning you don’t have to pay tax on it.
Tax-free capital in 2025 is €57,684 as a single filer or €115,386 if you have a tax partner.
It’s also important to know that, when you file your taxes, you must enter the value of your assets on January 1 at midnight of the year of the declaration. For example, if you’re filing taxes for 2024, you must declare the value of your assets as they were at 00:00 on January 1, 2024.
If you add everything together in box 3 and come out above this tax-free capital, you must declare this in your income tax return.
Let op! If you don’t report your crypto, it is considered as “undisclosed assets.” This could result in a fine of up to three times the amount owed. In severe cases, they may even take legal action against you.
The Dutch tax on presumed profits can significantly reduce your earnings, making accurate record-keeping essential. Being informed about the tax implications helps you plan better and avoid surprises during tax season.
How do you feel about the Netherlands’ strict crypto tax policies? Share your thoughts in the comments below!