36% Tax in Box 3 Act Targets Unrealized Gains for Actual Return

(NETHERLANDS) — The Netherlands is shifting from taxing actual sales to taxing annual paper gains on liquid assets, with a 36% tax and a €1,800 annual tax-free allowance, a move that digital nomads and mobile investors must plan around ahead of Dutch Senate approval.

What you’ll need before you plan

• A clean inventory of your Box 3 assets (cash, brokerage accounts, cryptocurrencies, and similar liquid investments).
• Year-end values for each account and wallet, plus the EUR exchange rate method you will use consistently.
• A basic residency timeline for each year you spend time in the Netherlands, since timing can affect which assets fall into Box 3.

Keep your plan flexible. The legislation is not final until the Netherlands Senate approves it.

1) Overview of the new tax system (what “tax on paper gains” means)

Digital nomads often think of investment tax as a “sell event” problem. You sell Bitcoin, you trigger tax. Under the proposed Actual Return in Box 3 Act (Wet वास्तवelijk rendement box 3), the Netherlands would move closer to taxing an annual return in Box 3 that reflects value movements each year.

“unrealized gains” are paper gains. Your portfolio rises in value during the year, even if you never sell. Under the new approach, that annual increase may be taxed as part of your Box 3 annual return.

That shift matters more for mobile investors than for many domestic households. Cash-flow timing gets tricky fast. A nomad can owe tax during a strong market year while living abroad, holding assets across exchanges, and trying not to sell during travel.

Documentation also becomes a first-order issue. If annual value movements are the tax base, your year-end valuations, account statements, and FX conversions become the foundation of compliance.

2) Tax structure and scope (what’s in Box 3, and what isn’t)

Start by separating “liquid assets” from other wealth. Under the proposal, Box 3 would generally apply to annual price changes and other annual return elements for liquid investments such as:

• Cryptocurrencies held on exchanges or in wallets
• Stocks, bonds, ETFs, and mutual funds held at brokers
• Savings and cash-like accounts

Nomads should assume that multi-platform investing raises record burdens. A typical setup might include a European broker, a U.S. broker, two crypto exchanges, and a cold wallet. Each can have different year-end timestamps, reporting formats, and base currencies.

Table 1: Scope check for common assets

Real estate and startup equity are treated differently under current rules. They remain outside this Box 3 “actual return” approach and continue under existing taxation rules.

How to build audit-ready records as a nomad

1. Lock in your year-end capture plan. Decide what evidence you will keep for each platform at year-end.
2. Collect statements and exports. Download broker tax reports, account statements, and crypto exchange CSV trade and balance files.
3. Document wallet balances. For self-custody, keep dated screenshots or signed messages that show addresses and balances.
4. Convert values to EUR consistently. Pick a defensible FX source and apply it the same way across holdings.
5. Store everything in one place. Keep a read-only archive with filenames that include dates and account identifiers.

✅ Prepare year-end statements and FX documentation now to simplify future compliance

3) Voting results and legislative status (what has passed, what hasn’t)

Netherlands House of Representatives approved the bill on February 13, 2026. The vote cleared the 75-vote threshold, passing with 93 votes. That shows meaningful support, but it does not make the law effective.

Netherlands Senate approval is still required. Until that happens, planning should stay scenario-based. Avoid irreversible moves that only make sense if the new regime starts exactly as drafted.

Practical steps while the bill is pending:

1. Plan two outcomes. One plan assumes annual taxation of unrealized gains. The other assumes current treatment continues longer.
2. Avoid forced timing bets. Large reallocations or sales only for a draft rule can backfire if the Senate changes the timeline.
3. Follow official guidance. Watch updates from the Dutch Tax Administration and formal announcements from the Netherlands Senate.

⚠️ Note: Implementation depends on Senate approval; monitor official updates and plan for multiple scenarios

4) Tax-free allowance and practical impact (cash flow comes first)

A tax-free annual return allowance changes who pays tax and when. Under the proposal, you compare your actual annual return across Box 3 assets to the allowance. If the annual return stays below it, you typically would not owe Box 3 tax for that year.

For digital nomads, the bigger issue is what happens in volatile years. Crypto can rise sharply without you selling. That can create a tax bill without a matching cash inflow. Then you face a choice you may dislike while traveling: sell assets, transfer funds across borders, or draw down reserves.

Use a cash-first checklist:

1. Keep a euro liquidity buffer. Aim to hold enough EUR cash-like assets to cover a potential assessment window.
2. Set a rebalancing rule you can follow. If crypto runs up, a periodic trim may reduce the risk of owing tax without cash.
3. Think about concentration risk. A portfolio dominated by one volatile asset can turn tax planning into a cash crisis.

Also watch aggregation. The allowance applies against your overall Box 3 annual return, not per exchange or per coin. That means scattered accounts still combine into one tax picture.

5) Implementation timeline and future changes (plan for change, not certainty)

If the Dutch Senate approves the measure, the new approach is planned to start January 1, 2028. That puts 2026 and 2027 into a “prepare and document” window for many mobile investors.

A faster review cycle also matters. The law’s review period was shortened from five years to three years, which can bring earlier adjustments after rollout.

Coalition intent has also been signaled toward a more traditional capital gains approach, with draft legislation expected by Budget Day 2028. Treat that as a direction, not a promise. For nomads, this means your medium-term plan should tolerate policy shifts.

A practical way to handle uncertainty:

1. Build records as if annual valuation will be tested. Those records still help under many other regimes.
2. Avoid long lockups you can’t unwind. Liquidity choices made today can limit options later.
3. Map residency timing. Changes in where you are tax resident can affect which rules apply in a given year.

6) Concerns and criticism (risk management for mobile investors)

Criticism of taxing unrealized gains often centers on liquidation pressure. You can owe tax after a strong year, even if you plan to hold long term. That pressure can feel worse if markets fall after year-end.

Capital flight concerns also come up in public debate. For nomads, the more immediate issue is simpler: residency rules drive tax exposure. If you misjudge your tax residency, you can end up with conflicts between countries and higher compliance costs.

Focus on defensible compliance steps instead of aggressive maneuvers:

1. Confirm tax residency status each year. Keep a clear file of where you lived, worked, and kept a home base.
2. Maintain travel-day logs. Save entry and exit evidence and a simple calendar summary.
3. Coordinate cross-border reporting. Where you have multiple tax ties, ask a qualified advisor how to reduce double-tax exposure.

A final planning point is operational. If you use many exchanges, simplify where you can. Fewer platforms can mean fewer valuation and reporting gaps.

This article provides general informational guidance and is not professional tax or legal advice.

Readers should consult a qualified tax advisor for personalized planning, especially given the conditional Senate approval.

Tax treatments may change; monitor official legislation and government guidance.