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The Essential Guide to Crypto Tax in the Netherlands for 2023
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There is no crypto capital gains tax in the Netherlands. Rather, crypto is taxed as an asset except in the case of crypto professionals such as traders, in which case gains are taxed as regular income.
Each year on January 1, the taxable base of a Dutch taxpaying individual's assets is reset and a wealth tax is applied to the deemed yield on the value of assets of the prior tax year. A major change to this tax is taking place for the 2022 tax year, with a new calculation method pending final figures on or by February 28th, 2023.
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 EUR, you were subject to the net worth tax (Vermogensbelasting) of 31%. For the 2022 tax year, the Netherlands is updating their wealth tax calculation, with final numbers for an updated calculation method to be released on February 28th of 2023.
The net worth tax is levied on the deemed yield of held assets, which is a fixed percentage return assumed by the government. Actual income is irrelevant. This is unlike countries that treat crypto as property; in these countries a gain or loss is only realized if the asset is traded.
Each year on January 1, 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 prior to 2022 used an arbitrary allocation of wealth.
Note for the 2022 tax year, Dutch taxpayers can choose whether to use the old or the new calculation method. From 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. At time of writing, a fictitious return for savings is 0.01%, debt is 2.46%, and investments is 5.53%.
These numbers are still pending, represent a slight update from the previous calculation method, and may change on or before February 28th, 2023. This new method also takes into consideration a return on debt, which the old calculation method did not.
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 and a tax-free amount of €50,650.
There are three tax brackets for the net worth tax. Although the net worth tax applies to all assets, the Netherlands assumes different yields for savings and property than it does for investment assets. It also assumes that the ratio of savings and property to investment assets shifts as one's wealth increases.
Again, for the 2022 tax season Dutch taxpayers can choose whether to use the old or the new tax calculation method. From 2023 forward, the new method must be used. Here are examples of both the old and new methods.
Old Netherlands crypto tax calculation
This tax calculation can be used by Dutch taxpayers for the 2022 tax year and previous years. For the 2023 tax year and going forward, the new account method must be used.
Note that these figures are subject to change on or before February 28th, 2023.
|Taxable base||Taxed at 0.03%||Percentage taxed at 5.69%||Effective return|
|≤ 50,651 EUR (Bracket 1)||67%||33%||1.898%|
|> 50,651 EU ≤ 962,351 (Bracket 2)||21%||79%||4.501%|
|> 962,351 EUR (Bracket 3)||0%||100%||5.69%|
Netherlands crypto tax calculation example, old method (through 2022)
Suppose Jan's taxable base was €300,000. The first €50,650 of assets are tax-free.
The value of his assets in Bracket 1 would be €50,650. His return would be deemed to be €961.34 in this bracket.
The value of his assets in Bracket 2 would be €249,350. His return would be deemed to be €11223.24 in this bracket.
Jan's total return would be deemed to be €12184.58.
The 31% wealth tax would be applied to €9,951 for a total wealth tax liability of €3,777.22.
New Netherlands crypto tax calculation
The new Dutch wealth tax determines your tax rate based on the actual proportion of your wealth that is in savings or investments, whereas the old method relied on an arbitrary allocation of wealth.
The Netherlands relies on fictitious returns for the purpose tax calculation. The rates for savings is 0.01%, investments 5.53%, and debt 2.46%. These are subject to change so be sure to check for the latest numbers.
Here's an example and how you would do your Netherlands tax calculation. Let’s say you hold €10,000 cash, €140,000 in crypto investments, and €20,000 in student loan debt.
1. Calculate the return on your assets, including cash and crypto
Your cash returns come to €1 (€10,000 * 0.01%). Your crypto returns come to €7,742 (€140,000 * 5.53%).
Then calculate deductible debt by deducting the threshold amount of €3,200 from the amount of debt you hold: €20,000 - €3,200 = €16,800 .
Your debt returns come to €413.28 (€16,800 * 2.46%).
For your taxable return, simply subtract the return on deductible debt from the return on investments (crypto) and savings (cash).
In this example, the calculation is: €7,742 + €1 - €413.28 = €7329.72
2. Calculate your wealth
Add your savings and investments: €10,000 + €140,000 = €150,000.
Calculate your deductible debt: €20,000 - €3,200 = €16,800.
Subtract the latter from the former (€150,000 - €16,800) for a net worth of €133,200.
3. Calculate your return percentage
Divide your taxable return by your wealth: €7329.72 / €133,200 = 5.5%
4. Calculate your taxable basis
Make the following calculation: investments + savings - deductible debt - tax-free wealth.
In this example, the calculation is: €10,000 + €140,000 - €16,800 - €50,650 = €82,550.
5. Calculate your profit from investments and savings
To do this, take your taxable basis and multiply it by your return percentage. In this example, €82,550 * 5.5% = €4,540.25.
The tax rate is 31%, so in this example you would owe €1,407.48
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 (9.42 - 49.50%).
Income tax brackets in the Netherlands
Income or Box 1 taxes for 2022 in the Netherlands are:
€0 - €69,397, 37.07%
€69,398 and upwards, 49.50%
These rates are not applied to crypto unless you are trading or engaged in other crypto activities professionally.
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 on 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 the purposes of Dutch taxes, worldwide income is separated into three different 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 activity related to crypto, 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 investment, such as cash or crypto.
The Netherlands sees crypto as assets, which means you enter the value of your crypto in Box 3. There is no capital gains tax, so you are not taxed only your actual return.
If you live outside the Netherlands, you may use the Tax return program for non-resident taxpayers. If you prefer not to file digitally, you may request a C form. If you only lived in the Netherlands for part of the year, you should use an M form.
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.
The way 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 the crypto mining will 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 is 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 is a taxable event.
Box 3 taxation applies to airdrops, mined, and staked crypto, unless the Dutch taxpayer is a professional trader, in which case it will apply to Box 1. In-game crypto rewards are not taxed unless the rewards are received professionally, in which case it is subject to Box 1 taxes.
Tips to minimize crypto taxes in the Netherlands
Because crypto is considered an investment, there may be an incentive for Dutch taxpayers to move from crypto into fiat at the end of the calendar year in order to minimize your tax obligation. The return rate on savings (cash) is 0.01%, whereas the rate on investments (crypto) is 5.53%.
That noted, the crypto markets are famously volatile, so Dutch crypto holders may prefer to simply pay the tax on their crypto rather than risk missing a bullish move in the market.
For a typical investor who is not trading professionally, there is no tax deferral option (Box 3 taxation). For Dutch tax paying 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, which is both a comprehensive crypto tax calculation software platform and a full-service crypto tax accounting firm.
Using TokenTax, you can simply 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
For taxpaying businesses in the Netherlands, all income (gains) is included in the taxable profit calculation. This will include all and any type of income, whether investments, trading, staking, mining, and/or rewards. The Dutch tax rate for these is 25.8% per cent, and 15% on profits up to €395,000.
For corporations, arguably the lending of cryptocurrencies is not treated as a taxable disposal. Remuneration corporate lending of crypto is treated as income, the same as other loans.
Tokens received from staking or mining cryptocurrency by Dutch corporate taxpayers are subject to corporate income tax based on their market value upon receipt.
Frequently asked questions
Here are some common answers to frequently asked questions around crypto taxes in the Netherlands.
When will you pay tax on crypto in the Netherlands?
After you submit your tax return, you’ll receive a preliminary assessment 6-12 weeks after submitting, which simply serves as an estimate. Later, you’ll receive a final assessment along with payment or refund details.
When is the tax deadline in the Netherlands?
The filing deadline for Dutch taxpayers is May 1.
What happens if I don't file my cryptocurrency taxes in the Netherlands?
If you’ve not declared your crypto holdings as a Dutch taxpayer, whether as a mistake or intentionally, you should declare your holdings as soon as possible. If the Belastingdienst determines you’ve not declared crypto assets, you may be fined 150% of the taxes due. If the Belastingdienst determines you’ve committed fraud, or if you have a history of tax avoidance, the fine could be increased to 300%.
Is cryptocurrency legal in the Netherlands?
Yes. At time of writing, there are no regulations prohibiting the use or trading of crypto assets in the Netherlands.
How are crypto as wages taxed in the Netherlands?
If crypto is earned as wages, its fiat value is reported along with other wages and income in Box 1 of Mijn Belastingdienst.
Where can I find the cryptocurrency regulation for the Netherlands?
The Dutch National Bank (DNB) regulates cryptocurrency in the Netherlands.
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