The Second House of the Dutch Parliament passed a legislative proposal on Thursday (February 13) that plans to impose a 36% capital gains tax on savings and most liquid investments, including cryptocurrencies. According to parliamentary statistics, the bill received the support of 93 members, exceeding the required 75 vote threshold and successfully advanced.
Under the proposal, savings accounts, cryptocurrencies, majority equity investments and gains from interest-bearing financial instruments would be subject to the tax regardless of whether the underlying assets have been sold.
Critics argue that the bill will lead to an outflow of capital from the Netherlands to countries with more favorable tax policies, as investors seek to avoid such high taxes.
The bill still needs to be passed by the Dutch Senate before it can be signed into law. If ultimately passed, it is expected to take effect in the 2028 tax year. But many investors in the crypto community have sounded the alarm, predicting capital will flee the country.
Investors say the tax is unrealistic and may be counterproductive
"France did this in 1997 and it resulted in a large number of entrepreneurs fleeing the country," said Denis Payre, co-founder of logistics company Kiala.
Crypto market analyst Michaël van de Poppe called the proposal “the stupidest thing I’ve seen in a long time.”
"The number of people willing to flee the country will be staggering," he added, echoing the views of other analysts and executives in the industry.
However, Investing Visuals points out that under the new tax regime of 36%, total assets after 40 years will drop to approximately 1.885 million euros, a difference of 1.435 million euros.
U.S. crypto and tech executives have expressed similar concerns about California’s proposed wealth tax on billionaires. The proposal, which would impose a 5% tax on personal net worth over $1 billion, sparked strong opposition and led to tech entrepreneurs announcing they would leave California.