Crypto Profit Tax: How Capital Gains Work
On the Netherlands’ income tax form, crypto declaration is done in a section called Box 3. It covers savings, investments, and other assets. “Other assets” is the category where virtual currency goes. Regardless, all held securities are treated the same, as they fluctuate in value and are often resold for profit. Box 1, by contrast, is used for people’s full-time jobs, freelancing, or professional businesses, presumed that they do that as a regular job or endeavor.
Those who acquire digital cash to invest in the market, in other words, non-professionals, get to write the majority of their operations down in Box 3, which doesn’t have the cumbersome, high rate of Dutch income tax. The latter covers in the high 30s for those making under 76,817 euros a year and just under 50% for those that make more.
Previously, legislators resolved to avoid clutter and hassle, and just produce a particular figure that they should an asset holder or trader should make, given a particular value of holdings. Right now, that’s 6.17% on net assets, minus a deduction. Meanwhile, if you gave someone digital cash as a gift, it was free up to 3,244 in most cases, or up to 6,604 euros if given to parents or children. Besides that, you could donate to charity taxfree, provided the amount’s 1-10% of your overall holdings.
Basis for the Presumed Gains Crypto Tax Regime
When crypto first blew up, the whole concept went over many people’s heads. Even today, there is still a patchwork of legislation for tax on crypto day trading. A lot of consumers end up dealing with rug pulls and get scammed.
Many operations are illegitimate. And there is still no shortage of tax havens where entrepreneurs can just run off and avoid paying taxes as well as circumventing regulation designed to prevent fraud and abuse. On top of that, with so much secrecy revolving around digital assets nowadays, it can be very hard to track. Consequently, traders who suffered losses still kept having to pay a tax on gains they didn’t even make.
How to Calculate Tax on Crypto: Two Options
You currently get to pay tax on crypto based on the presumed amount of appreciation on your assets or the factual appreciation. Choose whichever is less. Here is how you arrive at what you owe in Box 3. Firstly, keep in mind that the only relevant total is what you own as of January 1st, and if you’re tracking actual capital gains, you need to collect a ton of documentation to support your claim.
Your presumed return consists of:
- taking your savings and multiplying that by 0.92%
- your crypto holdings multiplied by 6.14%.
- the subtracted result of your debts multiplied by 2.61%.
Subtract that debt and the standard deduction of 57,000 euros from the sum of those asset values and you get your taxable sum. Multiply that by 32% to arrive at your “presumed return”.
Actual Returns
Since 2021, taxpayers can alternatively opt to calculate the actual return instead of the presumed return if their real-world gains or losses are lower than the fictitious returns. To do this, determine your actual profit or loss for each asset class over the year, subtract any related costs, and multiply by the same Box 3 tax rate. For example, if your €30,000 crypto portfolio only increased by €500 in reality, you could choose to report this actual return rather than the €1,842 presumed gain, potentially reducing your tax liability significantly.
Next, apply the same debt adjustment: subtract 2.61% of your total debts from the total actual gain. For instance, if your crypto and savings only increased by €500 over the year and your debt is €10,000, the debt deduction is still €261, resulting in a taxable actual gain of €239. Applying the 32% Box 3 tax rate gives a final liability of €239 × 32% + €76.
Crowdlending
If you’re exploring ways to make your crypto or cash holdings work harder, platforms like 8lends offer a crowdlending approach that can generate returns on your assets while staying fully compliant with regulations. By lending to vetted borrowers, you can earn interest that supplements your portfolio, providing a real-world alternative to merely relying on presumed gains. Unlike the abstract percentages used in Box 3 calculations, crowdlending lets you see tangible growth in your holdings, making it a smart way to optimize your financial strategy.
Scenarios: Calculating Tax on Crypto
Filing crypto tax in 2025, Marieke is a 28-year-old UX designer in Amsterdam. She has €20,000 in bank savings and €15,000 in crypto holdings on January 1, 2025, along with a €5,000 student loan. First, we calculate the presumed gains: her savings generate €20,000 × 0.92% = €184, and her crypto produces €15,000 × 6.17% = €925.50, for a total preliminary gain of €1,109.50. Next, we apply the debt deduction: €5,000 × 2.61% = €130.50, which reduces the taxable gain to €979. Finally, applying the Box 3 tax rate of 32% gives Marieke a liability of approximately €313 for 2025.
Pieter, a 35-year-old freelance photographer in Rotterdam, has €10,000 in savings, €50,000 in crypto, and an €8,000 personal loan. His savings generate €10,000 × 0.92% = €92 in presumed gain, and his crypto produces €50,000 × 6.17% = €3,085. Combined, this gives €3,177 in preliminary gains. Subtracting the debt deduction of €8,000 × 2.61% = €208.80 leaves €2,968.20. Applying the 32% Box 3 rate results in a tax of about €950.
Finally, Fatima, a 67-year-old retired engineer in Utrecht, has €80,000 in savings and €10,000 in crypto, with no debts. Her savings produce €80,000 × 0.92% = €736, and her crypto generates €10,000 × 6.17% = €617, for a preliminary gain of €1,353. With no debts to deduct, her taxable gain remains €1,353. Applying the 32% Box 3 tax rate results in a liability of approximately €433.
Progressing Legal Battle: Tax on Crypto Profit
The taxation of presumed gains in the Netherlands has been under intense scrutiny in recent years, particularly due to the impact on crypto profit tax payers whose actual returns are far below the fictitious returns assumed by Box 3. The controversy came to a head in 2021 when the Dutch Supreme Court delivered a landmark ruling on the issue. The case concerned several taxpayers who argued that the previous method for calculating Box 3 taxes, which applied a flat, unrealistic fixed return rate to all assets regardless of their actual performance, violated human rights principles.
The Supreme Court agreed. It ruled that the prior system could result in disproportionate taxation for individuals, particularly during years when actual asset growth was low or negative. For example, a taxpayer heavily invested in crypto could see the value of their holdings fall by 30% in a given year, yet still be taxed as if the portfolio had increased by 5–6%.
Infringements Continue
Following the 2021 ruling, the Dutch legislature revised the Box 3 system with differentiated fictitious returns: savings were assigned a low assumed return and riskier “other assets,” including cryptocurrencies and stocks – higher assumed returns. The goal was to more closely approximate realistic growth rates for each category of asset. While the legislative changes were intended to comply with the Supreme Court’s ruling, taxpayers and tax advisors quickly identified gaps.
In 2022 and 2023, the Supreme Court revisited the issue, this time evaluating whether the new differentiated system still infringed on taxpayers’ rights. The Court concluded that, despite the legislative adjustments, the system continued to assume growth in situations where it might not exist in reality. For instance, in years of negative market performance, high-volatility assets like crypto could decline significantly, yet taxpayers were still assessed on the higher fictitious returns. The Court found this still disproportionately taxed certain individuals, particularly those with portfolios concentrated in volatile assets, and again highlighted the conflict with human rights protections.
Conclusion
Navigating the Dutch Box 3 tax on crypto can be complex, with choices between presumed gains and actual returns, and the added nuance of debt adjustments. Understanding how to separate your assets, apply the prescribed return rates, and account for debts is crucial to avoid overpaying or facing unexpected tax liabilities. Real-world examples, like those of Marieke, Pieter, and Fatima, demonstrate how these calculations work in practice and highlight the importance of careful record-keeping and strategic planning.
If you want to put your crypto and cash holdings to work and generate real returns, 8lends is the outlet, a regulated crowdlending platform that lets you earn collateral-backed interest on your investments while staying fully compliant. Start growing your assets beyond what the presumed gains assume and make your money work smarter.
