The Dutch government has scrapped the proposed 36 % tax on unrealized gains in its 2027 Tax Plan and will instead move to a capital‑gains tax that applies only when assets are sold. Draft legislation for the new system is expected in spring 2027.
Abandonment of the unrealized‑gains tax
- The Actual Return in Box 3 Act, approved by the House of Representatives in February, would have taxed residents a flat 36 % on the annual increase in value of stocks, bonds and cryptocurrencies from January 2028, regardless of whether the assets were sold.
- Strong opposition emerged quickly: the Senate submitted a 36‑page questionnaire, a petition gathered over 61,000 signatures, and coalition senators from the VVD and CDA pushed for a levy on realized profits only.
- On 30 June the Senate postponed a vote, and on 7 July it passed a motion stating it had no objection to withdrawing the bill entirely.
- By 9 September the farmers’ party BBB threatened to force a Senate vote unless Finance Minister Eelco Heinen withdrew the proposal.
- The government’s summer “repairs” – a modest cut from 36 % to 35 % and a one‑year loss carry‑back – failed to secure support, and the promised amending bill never materialised.
Interim tax regime (the “stopgap”)
- The current system, in place since the December 2021 “Christmas ruling” of the Dutch Supreme Court, assumes a fixed return of 6.00 % on investments for 2026.
- Tax is levied at 36 % on this assumed return, not on the actual assets.
- Example: on €100,000 of investments the state assumes a €6,000 gain and taxes €2,160, an effective rate of roughly 2.2 % of the portfolio per year, irrespective of actual performance.
- The first €59,357 in net assets per individual (€118,714 for fiscal partners) is exempt.
- Since the 2025 “counter‑evidence” law, taxpayers whose real return falls below the assumed figure may declare the actual amount and pay tax on that instead; investors who exceed the assumption still pay tax on the assumed figure.
2027 Tax Plan adjustments
- Exemption threshold rises to €60,098 (or €120,196 for partners).
- Assumed return increases to 6.37 %, adding roughly €133 in tax per €100,000 of investments above the threshold.
Proposed realized‑gains model
- The replacement bill would tax actual returns only when assets are sold.
- Legislative approval cannot occur before 2029, creating an estimated €3 billion (≈US$3.5 billion) annual shortfall in revenue.
- Public broadcaster NOS reports full implementation could be delayed until 2032, with interim budget gaps potentially filled by higher income‑tax rates in the lowest two bands.
European context
- No EU country currently imposes a recurring tax on unrealized capital gains; the closest analogues are one‑time exit taxes in eight EU states and Denmark’s annual mark‑to‑market treatment of certain fund wrappers.
- If the 36 % rate had been retained, the Netherlands would have been among the highest in Europe. Only Denmark (42 %) and Norway (37.8 %) levy higher rates on capital gains; the European average for listed shares is 16.7 %.
- Several jurisdictions (Cyprus, Greece, Malta, Switzerland) charge 0 % on long‑held shares.
Outlook
- Watch for a formal withdrawal of the pending unrealized‑gains bill.
- Monitor the rate and details of the spring 2027 proposal for a realized‑gains tax.
- Observe how the Senate’s stance on realized‑gains legislation aligns with the projected transition timeline.
These developments will shape the tax environment for Dutch investors and may influence decisions about retaining wealth in the Netherlands versus relocating to jurisdictions with lower or no wealth‑tax burdens.
Source article: www.imidaily.com
