Dutch government drops tax on unrealised investment gains after backlash

The Dutch government has scrapped a plan to tax increases in the value of investments before they are sold, following strong criticism that investors could face tax bills without having received any cash. Prime Minister Rob Jetten said ministers had listened to parliamentary concerns and wanted to preserve the Netherlands’ appeal as a place to invest.

Instead, the government plans a 36 per cent capital gains tax, payable when assets are sold for a profit. It is due to cover shares, bonds and second homes from 2028, with cryptocurrency and foreign currency gains included from 2030. The U-turn is forecast to cost about €15 billion over eight years; ministers propose partly offsetting this by lowering the tax-free allowance from €1,800 to €1,000. The plans still need parliamentary support, and critics say the lower allowance could affect ordinary investors.