Crypto Tax Netherlands: Ultimate Guide 2024
Have you been scouring the internet to discover how crypto tax works in The Netherlands? Search no more! We've covered everything you need to know about Dutch crypto tax in 2024 in our ultimate guide. This includes how crypto is taxed, how much you have to pay, and how you declare it to the Belastingdienst.
This guide is regularly updated
The Dutch crypto tax rules are in constant flux (such as the fictitious gains percentages). At Koinly, we keep a close eye on any updates from the Belastingdienst and regularly review our guide to keep you informed and tax compliant.
18 December 2023: Updated for 2024
1 December 2022: Updated for 2023!
14 February 2022: Accountants urge crypto investors to report accurately as the Dac8 directive looms.
1 January 2022: Welcome to the Netherlands Crypto Tax Guide!
Is crypto taxable in The Netherlands?
Yes. Cryptocurrency is taxed in The Netherlands.Crypto is seen as a taxable asset by the Dutch Tax and Customs Administration — the Belastingdienst.
Can the Belastingdienst track crypto?
Yes. The Belastingdienst can track cryptocurrency. Crypto exchanges are obliged to give customer information to the Belastingdienst upon request.
It’s not just the big ones that give out their data either. It’s the smaller ones too. Just because there’s no official statement from your crypto exchange, it doesn’t mean they don’t share your transaction history with the Belastingdienst.
In other words, the best way to stay tax compliant is to report your crypto taxes accurately.
The new EU directive on data sharing - Dac8 - which will likely take effect later this year will give the Belastingdienst the ability to check whether someone owns crypto. Under the proposed directive - it's likely the Belastingdienst will have the authority to look into crypto companies' accountancy and gain insight into crypto assets - like they can with banks and pension funds. Dutch accountants are urging clients to report their crypto assets accurately to avoid penalties.
How is crypto taxed in the Netherlands?
Wondering how does crypto tax work? The Netherlands does not have a Capital Gains Tax, which is the method used by many countries to tax gains made on property, collectibles, or stock. Most also lump crypto into this category.
Instead, Dutch taxpayers are taxed on the presumed increase in value of their assets based on the fair market value on 1 January. This means even HODLing crypto is taxed.
The cost basis of your crypto can only be carried back to 1 January of the given tax year, and it resets again each tax year on 1 January.
This means you pay tax on presumed gains from your entire holdings over the financial year. The Belastingdienst always assumes you'll make a gain from your assets, never a loss.
You pay tax on your income, wealth, and assets according to a 3-tax box system of declaring income. The Belastingdienst will want to know the value of your assets at the start of the financial year (1st January).
In terms of the box system, the Belastingdienst divides taxable income into three categories, each with its own tax rate:
Box 1 is income from employment.
Box 2 is for substantial interest.
Box 3 covers presumed income from assets, savings & investments.
Cryptocurrencies fall under Box 3. Box 3 tax is known as Vermogensrendementsheffing.
However, in some instances, you'll report crypto in Box 1. This includes when you:
have insider trading knowledge;
are day trading.
are going to ‘mine’ crypto - excluding on a hobby level.
How much tax do you need to pay in The Netherlands?
The Belastingdienst calculate a so-called 'fictitious return' they presume you'll make based on the total value of your assets. The total value of your assets is the net value of your assets minus any allowed debts.
You pay 31% tax on a presumed return on the total value of your assets. Let's break it down.
How do I calculate my tax and what are fictitious gains?
Right, let’s get into the really tricky stuff.
Fictitious gains are based on the idea that the larger your wealth, the greater the overall returns on that wealth would be. It's a progressive tax system between 0.01% and 6.04%.
However, this system is being phased out by 2027.
As of January 2023, your actual assets will be categorised as one of three categories - bank deposits, other assets, or debts. This will determine the rate at which investment income is deemed, alongside your overall asset value.
It’s a little complicated but it works like this. Each category is deemed to yield a certain percentage. The weighted overage yield over all categories a taxpayer owns is applied to the total assets above the personal exemption limit of €57,000 (for 2024). This determines the taxable benefit, which is subject to a flat tax of 36%.
You can see the table below for an overview of the deemed yields for each category for 2023 and 2024.
|All other assets
These average return rates will change each year. Let's look at an example of how we could use the table above for our tax return.
You have €60,000 in assets that you need to pay fictitious gains tax on.
€57,000 (for 2024) of this is tax free so subtract that and you're left with €3,000.
Your assets all fit under the all other assets category, so it's assumed you made a 6.04% return on your €3,000 - which equates to a €181.20 assumed gain.
You'll pay 36% in tax on your assumed gain.
What other crypto earnings are taxed under Box 3?
Declare your assets from an airdrop or hard fork under Box 3.
Do you get taxed for holding crypto?
Yes, you do. The Netherlands is different from many countries where crypto is only taxed when you sell, trade, spend, or gift it. The Dutch tax office assumes you make a return from your assets and tax you on this assumed return. This is however being phased out by 2027 and replaced with a new system.
Do you pay tax on all crypto gains?
You don't pay tax on crypto gains, you pay it on your presumed return from your holdings on January 1st at 00:00am.
Income Tax on crypto
Now we've covered everything about gains and fictitious returns (well done for getting yourself through that, by the way), let’s talk about what the Dutch categorise as Income Tax.
In the Netherlands, crypto is taxed as income for employment (Box 1) when you:
Get paid in crypto — like a salary, but your employer must convert your cryptocurrency into euros when you receive it. See the Belastingdienst crypto page for more info.
Earn staking rewards and liquidity pools — like dividends.
Earn mining tokens as a business.
Earn DeFi interest — like bank account interest.
When you pay Income Tax on crypto - you'll pay it at the same rates as your regular Income Tax rate.
Mining crypto tax
Mining cryptocurrency in the Netherlands can either be considered as a hobby or as a full-fledged business. This will depend on several factors such as:
Degree of activity.
Consistency of profit.
To summarise, if you mine crypto as a hobby, you are taxed in the same manner as when you hold crypto as an asset (Box 3). If you mine crypto as a business and make consistent profits, this is taxed as income (Box 1). See this page on the Belastingdienst site for more info.
Crypto mining as a hobbyBOX 3
If you are mining as a hobby you'll declare that in Box 3. This is because it is assumed that if you are mining for a hobby, you do not make a consistent profit that could be considered additional income.
Crypto mining as a businessBOX 1
If your revenue exceeds your cost, you need to declare this under income from employment. This is taxed under Box 1 (income from employment) and is between 37.07% and 49.50%, depending on how much you earn. Here's a breakdown of income tax brackets.
How is crypto day trading taxed?
Trading in cryptocurrencies can be compared to trading in common currencies such as the US dollar. You are investing and speculating on price gains. In that case, you do not have to declare the proceeds of the trade.
How is DeFi taxed in The Netherlands?
DeFi is a fairly new concept and it's constantly evolving to offer new investment opportunities for crypto investors. It’s so new, in fact, that the Belastingdienst hasn't yet issued any clear guidance on it.
But don't sit too easily. This doesn't mean you won't pay tax on your DeFi transactions. It just means you need to interpret the current crypto belasting rules and apply them to your DeFi transactions.
If you are someone who earns a lot from DeFi in The Netherlands, definitely consider speaking to an experienced tax accountant about your specific transactions.
All this said, many DeFi crypto investments may be considered income and subject to Box 1 income tax. Examples of new ways you can earn crypto from DeFi include:
Earning interest through yield farming on lending protocols like AAVE, Compound.
Earning new liquidity pool tokens, governance, or reward tokens on protocols like Uniswap.
Lending your crypto to platforms like NEXO to earn interest.
Earn crypto dividends on platforms like CoinRabbit.
Do you pay tax when buying crypto in The Netherlands?
You are not charged tax for simply buying crypto. You are charged tax on the amount of crypto you hold at the beginning of the tax year (January 1st). See the section on fictitious gains above for more explanation.
Do you pay tax when you sell crypto?
This is otherwise known as ‘disposal’. Unlike most other nations, you are not charged direct tax on the gains you make from a crypto disposal. But that doesn't mean you won’t actually pay tax on it.
Instead, you are charged tax on the amount of savings and investments you hold at the beginning of the tax year (January 1st). If you make a big disposal of crypto and put it into your savings, this is included in the wealth tax process.
Do you pay tax when transferring crypto?
No. You pay tax on the collective value of your assets under the savings and investments category in Box 3. Whether you trade BTC for ETH, or ETH for euros, you are taxed on the collective value of your assets on January 1st.
Do you pay tax when gifting or receiving a crypto gift?
Gifting or inheriting in The Netherlands is tax free up to €3,244. This includes crypto. However, if you’re receiving a gift from your parents, then the tax free amount is more than doubled to €6604. If you pay over these amounts, you are taxed on them.
What about donations to a registered charity?
Charity donors can deduct the value of their donations from their taxable income, provided the charity is registered as a public benefits organisation (ANBI). If your donation is less than 10% of your annual taxable income, it is tax free.
Do you still pay tax on lost or stolen crypto?
Lost or stolen crypto can be deducted from your tax return. However, you need to have a way of proving that you once held the asset, and it was then stolen.
When do you have to pay tax on crypto in The Netherlands?
The Dutch tax season starts on 1 March. From this date, you can file your return on the online tax portal MijnBelastingdienst.
The filing deadline is 1 May.
Your crypto (and other relevant assets) must be declared in Box 3 (savings & investments) as they were on January 1st.
What is the cost basis accounting method in The Netherlands?
Cost basis is simply the original value, or purchase price, of an asset for tax purposes. Each country calculates it in a slightly different way.
In The Netherlands, the cost basis is determined by the value of your assets at the beginning of the tax year. More specifically, at 00:00 on January 1st. Even if the value of your assets were to go down by the time you pay your taxes by 1 May, the cost basis will still be determined by the value on 1 January.
What's the benefit of crypto software apps like Koinly?
As you can tell, submitting your crypto taxes in The Netherlands is pretty complicated. There are a lot of places where it’s easy to make mistakes.
You could spend hours transaction tracking and spreadsheet fiddling, all the while tearing your hair out. But there’s another option. Rather than risking human error, and devoting your precious time, why not get a piece of software to do it for you?
Koinly is a crypto tax software tool that makes submitting taxes stress-free and easy. It combines all of your portfolio from each of your exchanges into one, easy-to-manage location. It then looks at every transaction you’ve made and calculates your tax report for you.
Try it for free and see what you think.
How to use a crypto tax app like Koinly
Don't get stuck in the busy work. Don't get it wrong. Don't rely on your accountant to know where to look. Use Koinly to generate your crypto tax reports. Here's how easy it is:
1. Sign up for a FREE Koinly account. It only takes a minute!
2. Select your base country and currency. In this instance, The Netherlands and Euros.
3. Connect Koinly to your wallets, exchanges, or blockchains.Koinly integrates with more than 300 crypto exchanges, wallets, and blockchains. (See all) If you can't find yours, let us know - we're always adding more.
5. Let Koinly crunch the numbers. Make a coffee. Koinly will calculate your cost basis for each crypto asset like ETH, ADA, BTC, and more. Koinly will calculate each capital gain or loss from your disposals, as well as your crypto income and expenses.
6. Ta-da! Your data is collected and your full tax report is generated!
Head to the tax reports page in Koinly and check out your tax summary. This includes your net capital gains, other gains, income, costs, expenses, and any gifts, donations, or lost crypto.
7. To download your crypto tax report, upgrade to a paid plan. Download what you need, when you need it. For Dutch investors, the Complete Tax Report or the End of Year Holdings Report is ideal.
8. Send your report to your accountant, or complete your Tax Return yourself. Use the generated file to complete your Self Assessment Tax Return or send it over to your accountant. Job done.