Netherlands

In the Netherlands, cryptocurrencies are legally classified as property, specifically falling under the category of 'investments and other assets' within the country's tax system. The crypto landscape is regulated, meaning it is legal and subject to established tax rules, with increasing enforcement through initiatives like the upcoming EU DAC8 reporting from 2026. The Dutch Tax and Customs Administration, known as the Belastingdienst, governs cryptocurrency taxation. Most individual crypto holdings are taxed under Box 3 of the Income Tax Act 2001, which is the system for savings and investments. If crypto-related activities constitute a professional business, they fall under Box 1, subject to progressive income tax rates. For individual investors, there is no separate capital gains tax on crypto. Instead, passive crypto holdings are included in your Box 3 wealth. This means you are taxed annually on a presumed yield from your net assets (including crypto) that exceed a personal exemption threshold of €57,000. The flat tax rate applied to this presumed yield is 36%. There is no distinction between short-term and long-term gains, as the presumed yield is taxed annually regardless of how long you hold an asset. Exchanging crypto for fiat currency or swapping one crypto for another are not taxable events in themselves, the value of the new asset simply carries forward into your Box 3 wealth calculation. Services related to crypto may attract 21% VAT, though direct crypto exchanges are VAT-exempt. Businesses dealing with crypto are subject to standard corporate tax rates: 19% for profits up to €200,000, and 25.8% for profits above this amount. Specific crypto activities are treated as follows: Staking rewards are not taxed as income upon receipt but are added to your total asset base in Box 3, increasing the value on which the presumed yield is calculated annually. Mining can be classified as either a business activity under Box 1, with progressive income tax rates (36.97% to 49.5%) and potential deductions, or as a hobby, in which case the mined crypto is simply added to your Box 3 assets. DeFi positions and their yields, as well as NFTs, are also included in your annual Box 3 wealth valuation for the presumed yield calculation. A significant reform is pending: the "Wet werkelijk rendement box 3" (Law on Actual Yield Box 3). Approved by the House in February 2026 and awaiting Senate approval, this law aims to shift from taxing a presumed yield to taxing actual annual returns, including unrealized gains, at a flat rate of 36%. This change is set to take effect from January 1, 2028, and will introduce a new exemption of €1,800.