Do you pay cryptocurrency taxes in the Netherlands?

There is no crypto capital gains tax in the Netherlands. Rather, crypto is taxed as an asset. Prior to the 2022 tax year, if the taxable base value of your assets (crypto and non-crypto) was more than €50,000, you were subject to the net worth tax (Vermogensbelasting) of 31%. The Netherlands updated its wealth tax calculation for the 2022 tax year and beyond to a fictional net worth tax at a rate of 36%.

The net worth tax is levied on the deemed yield of held assets, a fixed percentage return assumed by the government. Actual income is irrelevant. This is unlike countries that treat crypto as property, where a gain or loss is only realized if the asset is traded.

On January 1 of each year in the Netherlands, the taxable base of an individual’s assets is reset. In other words, the wealth tax is applied to the deemed yield on the value of assets of the prior tax year.

This new wealth tax model calculates your tax rate based on the actual proportion of your wealth in savings or investments rather than having the Dutch government make that determination for you. The method before 2022 used an arbitrary allocation of wealth. 

For the 2022 tax year, Dutch taxpayers were allowed to choose whether to use the old or the new calculation method. From tax year 2023 forward, the new method must be used.

What are the crypto tax rates in the Netherlands?

Under the old and new calculation methods for Dutch taxpayers, a “fictitious return” is calculated on your savings and investments. For the 2023 tax year, the fictitious return for savings is 0.01% (provisional), debt is 2.46%, and investments are 6.17%, taxed at a flat 36%. 

In the case of crypto professionals such as active traders, crypto gains are treated as regular income and taxed accordingly. For most Dutch taxpayers, crypto is taxed as an asset.

How is crypto taxed in the Netherlands?

In the Netherlands, crypto is taxed as an asset, and Dutch taxpayers are subject to a wealth tax. For both the old and the new calculation method, this tax is based on the value of your holdings on January 1, less any debt. In 2023, individuals may have assets valued up to 57,000 EUR, with 114,000 EUR for a couple, without taxes applied.

There are three tax brackets for the net worth tax. Although the net worth tax applies to all assets, the Netherlands assumes different savings and property yields compared to investment assets. It also assumes that the ratio of savings and property to investment assets shifts as one’s wealth increases.

Netherlands crypto tax calculation for tax year 2023

The new Dutch wealth tax determines your tax rate based on the actual proportion of your wealth in savings or investments, whereas the old method relied on an arbitrary allocation of wealth. Per the Dutch tax authorities:

“The percentages for investments and other assets are already fixed. The percentages for bank and savings deposits and debts are still provisional. We will determine these percentages in early 2024. We will use those percentages in your final assessment.”

Deemed yields for the 2023 tax year (provisional)

• Bank balances, savings, and cash: 0.01%

• Investments/other assets such as crypto: 6.17%

• Debts: 2.46%

How to Calculate Your Crypto Taxes in the Netherlands for 2023

Assume that on January 1, 2023, you have:

• 10,000 EUR in a bank account (cash/savings)

• 140,000 EUR in crypto

• 20,000 EUR in student debt

• A 57,000 EUR tax-free allowance (for an individual in 2023)

Step 1: Calculate the return on your assets and debts

• Cash returns: 10,000 EUR * 0.01% = 1 EUR

• Crypto returns: 140,000 EUR * 6.17% = 8,638 EUR

• Deductible debt: 20,000 EUR – 3,200 EUR = 16,800 EUR

• Debt returns: 16,800 EUR * 2.46% = 413.28 EUR

• Taxable return: (8,638 EUR + 1 EUR) – 413.28 EUR = 8,225.72 EUR

Step 2: Calculate your wealth

• Savings and Investments: 10,000 EUR + 140,000 EUR = 150,000 EUR

• Deductible Debt: 16,800 EUR

• Net Worth: 150,000 EUR – 16,800 EUR = 133,200 EUR

Step 3: Calculate your return percentage

Step 4: Calculate your taxable basis

• Taxable Basis = (Savings + Investments) – Deductible debt – Tax-free allowance

• Taxable Basis = (10,000 EUR + 140,000 EUR) – 16,800 EUR – 57,000 EUR = 76,200 EUR

Step 5: Calculate your profit from investments and savings

• Profit = Taxable Basis * Return Percentage

• Profit = 76,200 EUR * 6.18% = approximately 4,712 EUR

Step 6: Calculate your tax owed

Deemed yields for the 2024 tax year (provisional)

• Bank balances, savings, and cash: 1.03%

• Investments (such as crypto): 6.04%

• Debts: 2.47%

Netherlands crypto taxes for professional traders

When a Dutch tax-paying individual operates a business in the context of crypto, including investing and trading beyond a mere hobby, and may expect to derive profit from such a business, gains are treated as regular income and taxed at ordinary rates

The Belastingdienst mandates that individuals professionally involved with cryptocurrencies must pay capital gains tax on taxable disposals, such as selling or exchanging cryptocurrencies.

This includes various transactions like selling for fiat, selling for stablecoins, exchanging one cryptocurrency for another, exchanging stablecoins, buying NFTs with cryptocurrencies, or purchasing goods or services with cryptocurrencies.

In such instances, taxpayers must calculate and report their gain or loss, which is determined by subtracting the cost basis from the proceeds from the sale. The cost basis is the cost of the disposed of cryptocurrency, whether in fiat or cryptocurrency, or the market value at the time of acquisition if it was exchanged for another cryptocurrency.

Every trade, sale, or disposal of cryptocurrencies, including exchanges or transactions with stablecoins, is considered a taxable event for professional traders in the Netherlands and taxed as regular income in Box 1.

Income tax brackets in the Netherlands

Income or Box 1 taxes for 2023 in the Netherlands are:

• 36.93% until €73,031

• 49.50% from €73,031

These rates are not applied to crypto unless you are trading or professionally engaged in other crypto activities.

How do you report crypto tax in the Netherlands

If you live in or receive income from the Netherlands or receive income from the Netherlands, you are expected to pay income tax in the Netherlands on income, financial interests in a company, and your savings and investments.

Dutch tax returns are due by May 1. The Dutch tax office processes returns filed before April 1 within three months. You can receive an extension on the due date, and interest charges may apply if you miss payments.

Netherlands crypto tax filing forms at a glance

For Dutch taxes, worldwide income is separated into three kinds of taxable income, each with its own schedule or “box.” 

For an individual Dutch taxpayer, taxable income is based on the aggregate income from these three boxes.

• Box 1 is taxable income from work and home ownership, including professional crypto-related activity, such as active trading for profit.

• Box 2 is taxable income from a substantial interest, such as business ownership. 

• Box 3 is taxable income from savings and investments such as cash or crypto.

The Netherlands sees crypto as assets, meaning you enter your crypto’s value in Box 3. There is no capital gains tax.

If you live outside the Netherlands, you may use the Tax return program for non-resident taxpayers. You may request a C form if you prefer not to file digitally. You should use an M form if you only lived in the Netherlands for part of the year.

If you earn crypto as wages, its fiat value is reported along with other wages and income in Box 1 of Mijn Belastingdienst.

Long-term crypto trades

Crypto in the Netherlands is subject to a wealth tax, so whether you trade short- or long-term, on January 1, your crypto holdings will be subject to the tax as outlined above. There is no incentive in the Netherlands to hold for the long term.

Crypto mining

How the Netherlands taxes crypto mining depends on whether it’s part of a business activity. If it is not, mining proceeds are assets subject to Box 3 tax rules. If crypto mining does not generate losses in the long run, typically, it is treated as income from “other activities” and subject to Box 1 tax rules.

Crypto staking and lending

Crypto staking and lending in the Netherlands are subject to Box 3 taxation unless the taxpayer is a professional trader. Crypto lending follows the treatment of an ordinary loan, which means that either the loan is an asset subject to Box 3 taxation (and the interest is not taxed separately) or, in the case of crypto professionals, Box 1 taxation, in which case the interest is taxed.

Crypto as payment for goods and services

For individual Dutch taxpayers subject to Box 3 Netherlands crypto taxes, payment for goods and services in crypto is not a taxable event. For Box 1 taxation, and in the case of corporate taxpayers, payments for goods and services are taxable.

Utility tokens

Box 3 taxation applies to airdrops, mined, and staked crypto unless the Dutch taxpayer is a professional trader, which will apply to Box 1. In-game crypto rewards are not taxed unless the rewards are received professionally, in which case they are subject to Box 1 taxes.

Tips to minimize crypto taxes in the Netherlands

Because crypto is considered an investment, Dutch taxpayers may be incentivized to move from crypto into fiat at the end of the calendar year to minimize tax obligations. The provisional return rate on savings (cash) is 0.01%, whereas the rate on investments (crypto) is 6.17% for the 2023 tax year.

That noted, the crypto markets are famously volatile, so Dutch crypto holders may prefer to pay the tax on their crypto rather than risk missing a bullish move in the market.

For a typical investor not trading professionally, there is no tax deferral option (Box 3 taxation). For Dutch taxpaying crypto traders, there is some ambivalence as to the applicable tax treatment. Generally, no year-over-year deferral is available if cryptocurrencies serve as cash or similar assets.

If you are actively and professionally trading and realizing crypto losses, you may be able to use these to offset other income for the purposes of Box 1 taxes.

Crypto taxes calculators or software to help calculate Netherlands crypto taxes

Netherlands crypto tax can, at first glance, appear to be complex. That’s why we created TokenTax, a comprehensive crypto tax calculation software platform and a full-service crypto tax accounting firm.

Using TokenTax, you can import data from every crypto exchange, blockchain, protocol, and wallet and easily sync your transactions via API or upload them in a supported CSV format. 

TokenTax takes the challenges out of your crypto tax Netherlands filing and guarantees accuracy and thoroughness. If you have doubts or questions about your Netherlands crypto taxes, we’re available to help.

Crypto taxes for businesses in the Netherlands

All income (gains) is included in the taxable profit calculation for taxpaying businesses in the Netherlands. This includes all and any type of income, whether investments, trading, staking, mining, and/or rewards.

On January 1 2023, the Netherlands’ starting corporate income tax (CIT) bracket decreased from €395,000 to €200,000, and the tax rate of the first bracket increased from 15% to 19%. The standard corporate income tax rate in the Netherlands for 2023 is 25.8%.

Dutch corporate taxpayers ‘ tokens received from staking or mining cryptocurrency are subject to corporate income tax based on their market value upon receipt.