How to Report Crypto Taxes in the Netherlands

The Netherlands has a unique approach to crypto taxation. For individual investors, cryptocurrency is not subject to capital gains tax on actual transaction profits. Instead, crypto holdings are taxed under Box 3 (income from savings and investments) of the income tax system, which levies tax on a deemed (fictional) return rather than actual gains. This means the Dutch tax system taxes you on what the government assumes you earn from your wealth, not what you actually earn. The Belastingdienst (Dutch Tax Authority) has been proactive in requesting data from crypto exchanges and informing taxpayers of their obligations.

Under Box 3, your total net assets (including crypto) above the tax-free threshold are subject to a deemed return, which is then taxed at 36%. The tax-free threshold (heffingsvrij vermogen) is €57,000 per person (€114,000 for tax partners) for 2025. The deemed return percentage varies depending on the composition of your assets. For crypto (classified as "other assets"), the deemed return rate has been approximately 6.04% to 6.17% per year. This means if you hold €100,000 in crypto above the threshold, the government assumes you earned roughly €6,000, which is taxed at 36% = €2,160 in tax, regardless of whether your crypto actually gained or lost value.

Following a landmark Supreme Court (Hoge Raad) ruling in December 2021, which found the deemed return system potentially violates the right to property, the Dutch government has been transitioning to a system based on actual returns. The new system would tax actual gains and losses (including unrealized gains) on your crypto holdings. Until the full transition, a temporary system applies that uses different deemed return rates for different asset categories. Taxpayers can file objections (bezwaar) to their Box 3 assessments if the deemed return exceeds their actual return.

If the Belastingdienst determines that your crypto trading constitutes a business activity, your gains are taxed under Box 1 (income from work and business) at progressive rates from 36.97% to 49.50%. The distinction is based on the intensity, regularity, and organization of your trading activities. Most individual investors are classified under Box 3, but very active traders may fall under Box 1. Box 1 taxation allows deduction of expenses but taxes actual gains at higher rates.

For Box 3 purposes, you must report the fair market value of your crypto holdings on two reference dates: January 1 of the tax year and January 1 of the following year (effectively December 31). The Belastingdienst uses the average of these two values to calculate your deemed return. You must use the market price in EUR on the reference dates. The annual tax return (aangifte inkomstenbelasting) is due before May 1 of the following year. Crypto holdings are reported in the "overige bezittingen" (other assets) section of Box 3.

For Box 3 taxpayers, staking rewards and mining income are effectively captured through the increase in the value of your holdings on the reference dates. You do not separately report income from staking — it is reflected in the higher value of your holdings. However, if you are classified as a Box 1 trader or miner, staking rewards and mining income are taxed as business income when received. DeFi yields and lending interest follow the same pattern — for Box 3, they are captured through asset valuation changes; for Box 1, they are taxed as income.

Taxxy calculates the fair market value of your crypto holdings on the Box 3 reference dates (January 1 and December 31) using historical price data. All values are converted to EUR. The platform generates a Box 3 asset summary with your total crypto value on each reference date, ready for inclusion in your annual tax return. Taxxy also tracks actual gains and losses in case you need to file an objection or when the actual return system is fully implemented.