In a fundamental overhaul of its wealth taxation system, the Dutch House of Representatives (Tweede Kamer) voted on February 12, 2026, to advance the Actual Return in Box 3 Act (Wet werkelijk rendement box 3). The bill passed with 93 votes in favor, comfortably clearing the 75-vote threshold.
The legislation marks a transition from taxing “fictitious” (assumed) returns to taxing actual returns at a flat rate of 36%. Crucially, for liquid assets like stocks and cryptocurrencies, this includes unrealized gains—meaning investors may be taxed on paper profits even if they haven’t sold their assets.
The Shift: From Assumptions to Actuals
For years, the Dutch “Box 3” system was criticized for taxing citizens on a fixed percentage of their wealth regardless of their actual earnings. The new system aims to address Supreme Court rulings that found the old method unconstitutional.
| Feature | Old System (Assumed Return) | New System (Actual Return) |
| Tax Rate | 36% (applied to a fictitious yield) | 36% (applied to real gains) |
| Liquid Assets | Taxed on assumed growth (~6%) | Taxed on annual price appreciation |
| Unrealized Gains | Not explicitly tracked annually | Taxed annually for stocks & crypto |
| Exemptions | ~€57,000 capital threshold | €1,800 tax-free return threshold |
| Effective Date | Ongoing transition | January 1, 2028 |
Asset-Specific Rules: The “Liquidity Gap”
The most controversial aspect of the bill is its treatment of different asset classes, creating a distinction between “liquid” and “illiquid” investments.
- Stocks, Bonds, & Crypto: These will follow a “capital growth” approach. Taxes are levied annually on both received income (dividends/interest) and the increase in value of the assets.
- Real Estate & Startups: These follow a “capital gains” approach. Tax on value appreciation is only due when the asset is sold or disposed of. However, rental income from real estate remains taxable in the year it is received.
- Loss Carry-Forward: The bill includes an unlimited loss carry-forward provision, allowing investors to offset future gains with losses from previous years.
Criticism and “Capital Flight” Concerns
The bill has faced intense backlash from the technology and cryptocurrency sectors. Critics argue that taxing unrealized gains creates a “liquidity crisis,” forcing investors to sell portions of their portfolios just to pay the tax bill on assets that haven’t actually been liquidated.
“The number of people willing to flee the country is going to be bananas. It is the dumbest thing I’ve seen in a long time.” — Michaël van de Poppe, Crypto Market Analyst.
Calculations suggest that a long-term investor contributing €1,000 monthly over 40 years could see their final portfolio value slashed from €3.32 million to €1.88 million under the new 36% regime—a 43% reduction in wealth accumulation.
Next Steps
The bill must now be debated and approved by the Dutch Senate before it officially becomes law. If finalized, the first tax year under this new regime will be 2028, with the first payments due in 2029.
