The Netherlands has scrapped its plan to tax unrealised (“paper”) gains on shares, bonds and cryptocurrency, replacing it with a conventional capital gains tax (CGT) of 36% on profits only when they are actually realised. Prime Minister Rob Jetten, a liberal who took office in February 2026, told MPs in a letter that the government had “responded to the criticism voiced in both houses of parliament regarding the capital gains system, and provides clarity to Dutch citizens regarding taxing wealth,” adding that the move “strengthens the investment climate.”
The reversal follows a backlash from investors worldwide after the original unrealised-gains plan was unveiled. Former Wall Street executive Andrew Lokenauth called it “insane,” Shopify founder Tobias Lütke described it as “the dumbest thing any government on planet Earth is pursuing right now,” and Elon Musk endorsed social-media posts attacking the scheme. An online petition against the plan gathered 50,000 signatures within a week. The episode traces back to 2021, when the Dutch Supreme Court struck down the country’s previous system of taxing a standardised notional gain — which had applied to about 2.5 million of the Netherlands’ 9.7 million taxpayers — prompting the government to draft the now-abandoned individual-gains proposal.
Under the new plan, the 36% CGT will apply to shares, bonds and second homes from 2028, covering roughly 90% of relevant financial instruments, with gains on cryptocurrency and foreign currencies following from 2030. The switch is expected to cost the government €15bn (£13bn) over the next eight years; to help offset that, the tax-free allowance for capital gains due to take effect in 2028 has been cut from an originally planned €1,800 to €1,000, and entrepreneurs will be given incentives to pay themselves dividends. For anyone currently resident in the Netherlands or weighing a move there, this replaces an open question — how paper investment gains would be taxed — with a dated, rate-specific rule that can now be factored into tax planning.
The change still needs to clear the Dutch parliament: the proposed amendment must be adopted by the upper house before the end of the year, according to the government’s letter to the House of Representatives. Passage is not guaranteed — Jetten’s three-party coalition does not hold a parliamentary majority, and some opposition parties have voiced concern about drawing a wider pool of small investors into the capital gains net.
References
The Telegraph – Netherlands ditches wealth tax over exodus fears / The National – Netherlands drops wealth tax plans amid exodus fears
