^{Photo of a pyrography / watercolor made by me}

2027, the year of Truth

When I read @karinxxl's blog today about the possible change in Dutch taxes, I thought for a moment that she had gone crazy. This can't be true. Is the Netherlands really preparing to shoot itself in the foot economically? Now I have to admit that I don't look at possible changes in the already complicated tax system here in the Netherlands every day. But I had to look this up. Unfortunately, it turns out that it is not @karinxxl who has gone crazy (happy for you Karin), but our policymakers have gone seriously crazy.

Everyone living in #theNetherlands, pay attention! From January 2028, the Dutch government plans to introduce a new tax system in which citizens pay 36% tax on both realized and unrealized profits. In other words: you are not only taxed on what you have earned, but they also tax paper profits, yes ... you are also taxed on what you could earn - someday - if you decide to sell.

And don't be under any illusions, they also tax if you don't sell. The first 1800 euros of actual return are exempt from tax.

What are the consequences of this?

You buy crypto. You keep it. You may even receive a small passive income from it. You don’t trade, you don’t speculate, you don’t even withdraw it.

Yet the government will look at your year-end balance, calculate your paper profits – and levy 36% tax on them.

Even if the market falls next month. Even if you can’t sell without massive slippage. Even if the coins are blocked or illiquid.

This isn’t just unfair, it’s insane!

Let’s see how the rest of the world treats crypto owners...

While the Netherlands is eagerly preparing to tax its citizens on every digital breath they take, other countries are doing it… a little less insane, to say the least. In Germany, you only have to hold on to your coins for one year for complete fiscal peace. Portugal simply says: “Crypto? Sure, go ahead, we won’t interfere.” Belgium nods graciously and asks if you’re professional — if not, then just leave it alone. In Georgia, they look at you incredulously when you ask if you have to pay tax on unrealized profits. And even in Spain, where everything moves slowly, the government still knows the difference between property and loot. But the Netherlands? The Netherlands turns on the tax vacuum cleaner as soon as you dare to own something that isn’t in euros in a savings account. You don’t even have to have sold it — the idea that you can sell something is enough for 36% tax.

The deeper problem: it’s unworkable

This new system expects citizens to:

• Track daily price fluctuations across all wallets and platforms
• Calculate staking/yield/dividend yields in euros
• Determine fiat values ​​for tokens that aren’t even listed
• Pay huge tax bills, even when you don’t have the liquidity to do so
  
  

If you’re living off passive crypto income, the math just doesn’t add up. You’ll be forced to sell assets, destroy your compound growth, and suck your own future dry, just to keep the Dutch tax inspector happy. While they don’t even understand the tools you’re using.

The real danger isn’t just personal.

It’s national. The Netherlands will lose entrepreneurs, developers, digital nomads, and capital. The government will collect less, not more, because people flee or go underground. And the already low trust in the system will completely disappear. Not even out of rebellion, but out of survival.

But don't worry. The government certainly knows what it's doing. It's probably the intention that savers, investors, and entrepreneurs leave en masse, move their money, or simply don't dare to build anything anymore. That's called "solidarity policy": everyone is beaten up just as hard, so that no one dares to stand out from the crowd. Being right is no longer the intention. Right in the mud, that is.

Posted Using INLEO