The Netherlands will tax unrealized gains starting January 2028, marking a new precedent in Europe that may influence other countries.
• Unrealized gains on assets such as stocks, bonds, crypto, and real estate will be taxed at the current 36% rate, without relief for paper losses. • Investors may need to sell part of their holdings to pay the tax, creating liquidity challenges even when no profit is realized. • This could spur wealth migration: ambitious citizens may leave, businesses may relocate, and new investors may avoid the Netherlands. • Main risk: taxation on unrealized gains discourages entrepreneurship and long-term investment, potentially reducing economic growth and family wealth accumulation. • Strategic implication: geographic mobility, multiple residencies, and tax planning become essential to preserve capital and maintain operational flexibility.
Takeaway: With unrealized gains taxation coming, preparing alternative residencies, passports, and cross-border financial structures in advance is critical to protect assets and maintain financial freedom.
