The Dutch government and the lower house of parliament have approved a controversial tax reform that will impose a 36% tax on unrealized capital gains starting from 2028, contingent upon the Senate's approval. This tax will target mainly liquid assets such as stocks, bonds, and cryptocurrencies, requiring individuals to pay taxes on income that they have not yet received. While traditionally capital gains on assets like real estate remain under different tax rules, this new measure focuses primarily on financial investments.

The implication of this taxation is significant, as it mandates taxes on appreciation in asset value that has not yet been realized through a sale. For example, individuals will have to report and pay taxes on potential gains from stocks or cryptocurrencies, even if they haven't sold any of their holdings. This ambitious reform aims to increase government revenue but has raised concerns among investors and the general public about its potential impact on economic behavior and investment strategies.

As the planned 36% tax on unrealized gains awaits a Senate vote, the proposal has already ignited discussions regarding its fairness and efficiency. Critics argue that taxing unrealized gains creates a financial burden for taxpayers who may face liquidity pressures to pay taxes on profits that are not yet realized. The outcome of the Senate's decision could shape not only the financial landscape in the Netherlands but also influence how other countries approach similar issues related to capital gains taxation.