As the use of cryptocurrency continues to grow in the Netherlands, crypto investors should understand the tax implications of interacting with digital assets in the country. In this regularly-updated guide, we will explain every crypto tax rule in the Netherlands. Check out the sections below to find out how the Belastingdienst treats DeFi, NFT, and crypto transactions, and how to report your crypto taxes to the Dutch tax authorities.
Crypto Taxes – FAQs
Is Crypto Taxed in the Netherlands?
Yes, cryptocurrencies are subject to taxation in the Netherlands. Private individuals holding cryptocurrencies as personal assets don’t pay tax on selling or disposing of them. Instead, they are taxed annually based on the value of their crypto assets on January 1st, under the Dutch wealth tax known as “Box 3”. However, if you are professionally involved with cryptocurrencies, gains from trading, mining, and other activities may be subject to income tax under Box 1.
Do You Get Taxed for Buying Crypto in the Netherlands?
No, buying cryptocurrency in the Netherlands is not taxed. You are only taxed based on the value of your cryptocurrency assets at the beginning of the tax year, January 1st.
Can the Belastingdienst Track Crypto?
Yes, the Dutch tax authority, Belastingdienst, can track cryptocurrency transactions. This is achieved through various means, including working with other government agencies and using blockchain analysis tools.
When Do I Report my Taxes in the Netherlands?
Taxpayers in the Netherlands declare their taxes annually, and the deadline for submitting your tax return is typically April 30th of the following year. However, it’s important to note that there may be different deadlines for certain types of taxes or situations.
Cryptocurrency Taxes – TLDR
The Netherlands has a tax system that divides an individual’s worldwide income into three different types of taxable income, referred to as “boxes.” Each box has its own tax rate(s) and is taxed separately under its own schedule.
Box 1 is for income from work and primary residence. It includes income from employment, business income, rental income from a primary residence, and income from freelance or self-employment. Income from Box 1 is taxed at progressive rates, meaning the tax rate increases as the income increases.
Box 2 is for income from a substantial interest in a company. It includes income from shares held in a company with at least 5% of the claims. The income from Box 2 is taxed at a flat rate of 26.9%.
Box 3 is for income from savings and investments. It includes income from savings accounts, investment funds, and other assets that produce income. The income from Box 3 is taxed at a flat rate of 31% on an assumed return based on an individual’s net assets.
For cryptocurrencies, only two of these boxes are relevant:
Box 1 box applies only if an individual is professionally involved with cryptocurrencies, including investing and trading, and expects to profit from such a business. The gains are treated as regular income and taxed at ordinary rates.
Box 3: Cryptocurrencies are considered capital assets under Dutch tax law and are subject to Box 3 wealth tax along with the rest of an individual’s net assets.
Crypto Tax under Box 1
As previously mentioned, Box 1 only applies to individuals professionally involved with cryptocurrencies. To determine whether an activity is considered a hobby or a business for income tax purposes, some initial indicators are:
• The expectation of making a profit from the activity
• Investment of sufficient capital into the activity
• Amount of time spent on the activity
• Presence of multiple clients
• Degree of ‘entrepreneurial risk.’
• Liability for the company’s debts
These criteria are not exhaustive, and the Dutch tax authorities will assess each activity on its own merits to determine whether it qualifies as a business for income tax purposes. For more information, please see this page on the Belastingdienst site.
Trading Tax
For private investors who trade cryptocurrencies in the Netherlands, capital gains from such trading activities are not subject to taxation. Accordingly, capital losses from cryptocurrency trading in private assets are also not taxable.
However, if an individual operates a business related to cryptocurrency, such as trading and investing beyond a mere hobby, and expects to derive a profit from such a business, the gains are treated as regular income and taxed at ordinary rates under Box 1.
Salary Payments in Cryptocurrency
if you receive your salary in cryptocurrency, it is considered a form of payment in kind and subject to income tax – Box 1. The value of the cryptocurrency in euros at their receipt should also be recorded, just like the value of regular salaries. The tax rate will depend on your income tax bracket.
2023 Tax Rates for Box 1 Income
So, how much is crypto tax in the Netherlands under Box 1? The tax rates for Box 1 income are progressive, meaning that the percentage of tax you pay increases as your income rises. The following are the latest income tax rates:
* In the first bracket of box 1, national insurance tax is levied at a rate of 27.65%.
Crypto Tax under Box 3
Box 3 taxation is based on the net wealth of the taxpayer, including a broad range of assets and investments, with a flat tax rate of 31% on deemed income from savings and investments. This means that all taxpayers are subject to the same rate regardless of income level. Deductible debts can reduce the tax payable, and there is a tax-free threshold of €50,000 per taxpayer.
Taxpayers are required to report their assets and investments, including cryptocurrencies. The value of your cryptocurrencies held by the taxpayer on January 1 of the tax year will be added to your other assets, such as savings and investments, to determine your total assets. The following summarizes the principles of taxing different cryptocurrency transactions and activities under Box 3:
Mining Tax
In summary, if you are mining as a hobby and not making a consistent profit, you will only be subject to wealth tax on the value of the cryptocurrency you hold as part of your net assets – Box 3. However, if your mining revenue surpasses your expenses, you must report it under “income from other work” or “profit from a business,” it will be subject to taxation under Box 1.
Airdrops and Hard Forks Tax
Generally, airdrops and hard forks are subject to Box 3 taxation. This means that the value of the assets received from an airdrop or hard fork is added to the taxpayer’s other assets and investments and taxed at the applicable flat rate of 31%. However, if the taxpayer is classified as a trader, these may also be taxed under Box 1.
Staking Tax
Staking rewards are considered part of the taxpayer’s assets and are taxed under Box 3. This means that the value of the staking rewards is added to the taxpayer’s other assets and investments and taxed at the applicable flat rate. The taxpayer must report their staking rewards as part of their annual tax return and the value of their other assets and investments.
Lending Tax
Lending cryptocurrencies is considered a form of standard asset management, and any income earned from lending will be taxed under Box 3 along with the value of the cryptocurrencies being lent. This means that the income earned from lending and the value of the lent cryptocurrencies will be added to the taxpayer’s other assets and investments and taxed at the applicable flat rate of 31%.
HODLing Tax
Holding cryptocurrencies or digital assets is not directly taxable. However, holding them affects the calculation of the annual wealth tax under Box 3. If you hold cryptocurrencies or digital assets on January 1st, you must declare them for the annual wealth tax calculation, even if you do not sell or trade them during the year.
Scams, Theft, and Losses
For Box 3 taxation, any cryptocurrency you own on January 1st must be declared, regardless of whether it is later stolen or lost. The value of the cryptocurrency on January 1st is used to determine the amount of tax owed, even if the value of the cryptocurrency has since changed due to market fluctuations or other factors.
The New Tax Calculation Method Explained
The Dutch tax authorities have recently introduced a new method of calculating Box 3 taxation, which differs from the previous method. This new method is designed to reflect the actual return on investment better and is expected to lead to a more accurate assessment of tax liability. Taxpayers can choose between the old and new calculation methods for the 2022 tax year. However, starting from the 2023 tax year, only the new method will be applicable. The new method is more advantageous for taxpayers with lower net wealth, as they will pay less tax under the new method compared to the old method. For taxpayers with higher net wealth, the old method may be more advantageous, although they may still choose to use the new method if they prefer a more accurate reflection of their actual returns.
Old Method
The table below provides an overview of the three brackets and how the tax authority applies fictitious returns to calculate the income from your assets.
- If your assets fall into bracket 1 (up to €50,651), the Belastingdienst assumes that 67% of your assets are used for savings, and the remaining 33% is invested. They then calculate a return of -0.01% on 67% of your capital and a return of 5.53% on the remaining 33%.
- In bracket 2 (€50,651 – €962,351), a return of -0.01% was calculated on 21% of your assets and a return of 5.53% on 79% of your assets.
- If part of your assets fell into bracket 3, then a return of 5.53% was calculated on that entire part.
New Method
The new method for calculating income from savings and investments is based on the actual assets that you have declared in your tax return rather than the assumed assets used in the old method. The tax authority uses fictitious returns that are close to the actual rates of return for savings or investments, which can be found in the table provided.
- To calculate your income from savings and investments, you first calculate the return per type of asset using the rates of return from the table. Then you add the return on savings to the return on investments and other assets and reduce the total with the return on deductible debts.
- Next, you calculate your assets by adding up all the types of assets you have declared in your tax return minus your debts. You then use your assets to calculate the rate of return. After reducing your assets with the tax-free allowance, you have the basis for savings and investments. If you have a tax partner, you may divide the basis for savings and investments.
- To calculate the rate of return, you divide the calculated rate of return by your assets and multiply the result by 100%. Finally, you multiply the rate of return by your share of the basis for savings and investments to obtain your income from savings and investments. After calculating your income from savings and investments using the new method, you must pay 31% tax on that income. This tax rate remains the same as in the old method.
How are Crypto Gifts Taxed?
Gifts are subject to gift tax, which is known as “schenkbelasting“. This tax applies to all gifts that individuals receive, regardless of whether they are money, property, or other assets, including cryptocurrency gifts.
The amount of tax that must be paid depends on the value of the gift and the relationship between the giver and the receiver. If the gift is given between spouses or registered partners. If the gift is given between parents and children, the first €6,250 is tax-free, and any amount above that is taxed at a progressive rate, which can be up to 20%.
If the gift is given between other individuals, such as friends or distant family members, the first €2,244 is tax-free, and any amount above that is taxed at a flat rate of 30%.
It is important to note that individuals who receive a gift must report it to the tax authorities, even if no gift tax is owed. You can submit your gift tax return electronically through the Belastingdienst website. Simply log in to your MijnBelastingdienst account and select the “schenkbelasting” section to complete the necessary forms and submit your return.
Non-taxable Crypto Transactions
When is crypto activity not taxed in the Netherlands?
Buying Crypto with Fiat
Purchasing crypto with any government-backed currency such as EUR or USD is not taxable. This is true for any other digital asset similar to cryptocurrencies, such as NFTs. It makes no difference whether you purchased the crypto through a bank account or a credit card transaction.
However, if you’re professionally involved with cryptocurrencies, you must pay taxes when you sell or “dispose” of your crypto. You must keep an accurate record of the purchase to determine the cost basis of the transaction. If you use a crypto portfolio tracking tool such as Accointing, the platform will automatically keep track of all this information.
The cost basis of acquired crypto = amount paid for crypto in EUR + fees for the acquisition
Buying Crypto with Crypto
As long as you’re considered a private investor by the Belastindienst, purchasing crypto using another digital asset is not a taxable event. This is true for buying any other digital asset similar to cryptocurrencies, such as NFTs.
However, if you’re considered a self-employed trader, capital gains tax is applied:
Taxable gain or loss = proceeds from the sale (fair market value of acquired crypto) – cost basis of crypto given up.
Proceeds from the sale (fair market value of acquired crypto) = cost basis of acquired crypto (relevant for future dispositions)
The acquisition of the new crypto (coin, token, NFT, etc.) is not itself taxable, but using another asset to purchase triggers a taxable event. This is considered a barter transaction. Using crypto to buy another crypto is the same as selling the first crypto at its fair market value and immediately using those funds to purchase the new asset. The first transaction would be a taxable disposition in which a gain or loss has to be recognized, and the second would be an acquisition for fiat. With crypto-to-crypto purchases, you’re essentially doing both of the above in one transaction. Therefore a gain or loss has to be reported on the asset given up.
Selling Crypto
Selling or disposing of cryptocurrency is not considered a taxable event for individuals who hold cryptocurrencies as personal assets and are not professionally involved in crypto activities. Instead, the gains from cryptocurrency disposals are included in an individual’s wealth and are subject to taxation under the Dutch wealth tax, also known as “Box 3”. It is important to note that if you are professionally involved in cryptocurrencies, you will be subject to income tax on any gains realized from trading activities
Transfers between Wallets
Transferring cryptocurrency to your own wallet, whether it’s a hot or cold wallet, is not a taxable transaction. Be careful – without precise classification as an internal transaction, some tax reports assume that transfers are taxable and assume a sale. At Accointing, we have decided not to make assumptions about what is internal for a user. We find possible matches for internal transfers and have them verified by the user in one of our review steps. All you need to do is confirm the proposed transactions as internal transfers, which will be recorded as internal transfers.
Donations
Crypto donations to registered public benefits organizations (ANBIs) are treated similarly to traditional donations. Donors can deduct the value of their donations from their taxable income. If the donation is less than 10% of the donor’s annual taxable income, the transaction is tax-free.
For one-time gifts, there is a minimum threshold amount for the donation to be written off. The threshold amount is based on the donor’s total income and deductions in Boxes 1, 2, and 3. The minimum amount is 1% of the threshold income, with a minimum of EUR 60 and a maximum of 10% of the threshold income. The donor can deduct the amount above the threshold minimum until the maximum allowable amount.
Make sure that the charity you’re donating to is registered as an ANBI in order for the donation to be tax-deductible. Go to this page of the Belastingdienst to check whether the institution you’re considering donating to is registered as an ANBI.
Crypto Trading: Futures vs. Margin Trading
Margin trading involves borrowing funds from a broker or an exchange to take a larger position on a particular cryptocurrency. This can result in higher profits or losses than trading with just your own funds. However, any income generated from margin trading or trading futures and derivatives can be considered taxable income under Box 3.
Taxable Transactions
If the Belastingdienst considers that you’re professionally involved with cryptocurrencies, the sale or exchange of cryptocurrencies is a taxable disposal, and you must pay capital gains tax. Taxpayers must report the realized gain or loss from such transactions in their annual tax return.
What is considered a taxable disposal of cryptocurrencies for Dutch professional traders or businesses?
• Selling a cryptocurrency for fiat (USD, Euro, GBP, etc.)
• Selling a cryptocurrency for a stablecoin (USDT, USDC, DAI)
• Exchanging one cryptocurrency for another
• Exchanging a stablecoin for another stablecoin
• Buying an NFT with cryptocurrencies
• Purchasing goods or services with cryptocurrencies
In any case, when making a taxable disposal of a crypto asset, you must calculate and report your gain or loss:
Taxable gain or loss = Proceeds from sale – Cost basis
Proceeds from sale: The amount of fiat you received for the sold crypto asset, its market value, or the crypto asset received in the transaction.
Cost basis: The cost of the disposed of cryptocurrency – the cost in fiat or cryptocurrency or the market value at the time of acquisition if it was exchanged for another cryptocurrency.
Every time you trade, sell, or dispose of cryptocurrencies as a professional trader, it is a taxable disposal. Even exchanging one cryptocurrency for another or trading with stablecoins is considered a taxable disposal.
DeFi Taxation
DeFi, short for decentralized finance, refers to a system of blockchains, coins, tokens, and decentralized apps (dApps) that offer peer-to-peer services to their users through smart contracts. As of now, the Belastingdienst has not issued any formal guidelines regarding DeFi transactions.
If you’re involved in DeFi activities, the best approach to ensuring compliance with tax regulations is to review and determine the specific nature of each transaction. There is no difference between the taxation of DeFi transactions and CeFi transactions (centralized finance, which refers to anything that runs through an exchange or broker).
As long as the Belastingdienst does not consider you as professionally involved with cryptocurrencies, any DeFi transactions that impact your portfolio’s holdings by January 1st will likely be taxed under Box 3, as they will be considered part of your assets for the purposes of calculating your annual wealth tax.
NFT Taxation
As with DeFi taxes, the Belastindienst has not yet issued clear guidelines for the taxation of NFTs. However, we can assume that NFT taxation by the Belastindienst will work the same way as the taxation of other cryptocurrencies for the time being. Since NFTs are simply another type of token running on a blockchain, it makes sense to apply the same principles as the taxation of other cryptocurrencies.
NFTs are taxed as private investors with a wealth tax, and only professional traders or businesses must declare profits or losses from the sale of NFTs. Each NFT is considered a unique asset for tax purposes.
Purchasing an NFT is a non-taxable transaction since you’re acquiring an asset. However, if you are a professional trader or business and buy the NFT with a cryptocurrency such as ETH or SOL (as is common with OpenSea and Magic Eden), you likely have a taxable gain or loss from the sale of the cryptocurrency used to purchase the NFT – this works the same way as exchanging one cryptocurrency value for another.
The cost basis of the NFT = the amount paid for the NFT in CHF (regardless of whether fiat or the CHF equivalent of cryptocurrency was used to purchase the NFT) + acquisition fees
Taxable gain or loss = sales proceeds – cost basis
Sales proceeds = the amount of fiat or cryptocurrency (in CHF) received for the sold NFT
Cost basis = cost of the sold NFT
Tax Planning
For those professionally involved with cryptocurrencies, it is important to proactively plan crypto taxes to achieve a lower tax burden. Whether one wants to proactively reduce the tax burden for the current year or simply plan ahead, it is important to be aware of the tax implications and ensure that appropriate reserves are held for the payment of taxes when due.
As a private investor, it is advisable to review one’s portfolio carefully before the end of the year and check the market values of individual cryptocurrencies. Adjustments may need to be made if the displayed market value does not correspond to the current market value. If in doubt, cryptocurrency or NFTs without a clear market value can be sold before December 31 to realize gains or losses tax-free.
Tax Compliance
Contrary to popular belief, cryptocurrency transactions are rarely private and anonymous. Anyone with a blockchain explorer like blockchain.com can see all of your transactions. Even wallets without KYC must eventually perform transactions with KYC-verified accounts, establishing the connection to the taxpayer’s identity. Tools like AnChain, Chainalysis, Coinfirm, and Crystal can provide forensic data to track almost any transaction on the blockchain.
The Belastingdienst collects information on crypto transactions, so it is advisable to be cautious and keep accurate records. Remember that intentional tax evasion is a criminal offense.
Tax Deadlines
The tax year runs from January 1st to December 31st, and taxpayers must file their tax returns by April 30th of the following year. For the tax year of 2022, the online tax portal MijnBelastingdienst will open on March 1st, 2023, and you can start your tax declaration.
Recordkeeping for Tax Purposes
To ensure compliance with tax laws and to verify the accuracy of tax returns, taxpayers should maintain comprehensive records of all cryptocurrency transactions for at least 5 years. The tax authorities may request these records at any time, and failure to provide them may result in penalties and fines. We recommend keeping the following records indefinitely:
• Hot or cold crypto wallet addresses containing the taxpayer’s crypto transactions.
• Other records include transaction history data from exchanges (and wallets).
• Account statements or other records showing deposits and withdrawals of fiat currency.
• Transaction history with all of the following information:
- Type of crypto assets
- Date of each transaction
- Type of transaction
- Units of cryptocurrency and value in EUR at the time of the transaction
- The cumulative sum of assets
You can use a crypto portfolio tracker to keep all your data in one place. This is an essential tool for crypto holders as it helps you stay on top of your crypto assets and transaction history. With using Accointing’s crypto portfolio tracking tool, for example, all the information mentioned above is automatically saved in your portfolio through your import data.
You should keep a copy of your tax report, all other provided files (e.g., the complete dataset), and all CSV or Excel files you uploaded to Accointing.com. If you used API and blockchain connections, keep the blockchain address and API keys. If you’re ever audited, you must be able to restore the results.
How to File your Crypto Taxes in the Netherlands?
Filing crypto taxes is relatively straightforward, especially for retail investors who hold cryptocurrencies as personal assets and do not engage in frequent trading activities. You can file your taxes online using the MijnBelastingdienst portal of the Belastingdienst.
The Accointing tax report provides all the information required for your tax return, making the process even easier. For step-by-step information on how to file your crypto taxes in 2023, check out our regularly-updated Crypto Tax Filing Guide for the Netherlands.
How Does Accointing Simplify my Crypto Taxes?
Accointing simplifies your taxes by providing a user-friendly platform that automates the tracking and reporting of your cryptocurrency transactions, including trading, buying, and selling. The platform generates an easy-to-understand tax report that contains all the information you need to file your taxes accurately, including capital gains and losses, income from staking, and more. Accointing also integrates with popular crypto exchanges and wallets, making it easy to import your transaction history and ensure that your tax report is accurate and up-to-date. Additionally, Accointing offers comprehensive support and guidance on how to correctly file your taxes and comply with Dutch tax laws.
How Can Accointing Help Me Save Money On My Taxes?
To further the information above, the platform’s automation will save you from gathering your transactional data and paying someone else to make sense of it.
On top of this, the ‘overview’ page will give you a wealth of insight into your portfolio and its performance, all of which can be tracked at any time online or on the go using our mobile app.
You’ll also see a breakdown of each asset’s current profit and loss status and how well your portfolio has performed. All of these can be combined to maximize the return on your investments and legally minimize your tax liability.
When figuring out your tax liability, our 4-step review process will ensure that each transaction is classified correctly, avoiding any of your transactions being taxed unnecessarily. We will also identify and iron out any internal transactions (transfers between your own wallets) to ensure you are not getting taxed for moving your crypto off of exchanges.
How to Use Accointing by Glassnode to File Your Crypto Taxes
Connecting to Accointing by Glassnode
To create an accurate tax report, you must connect all your wallets and exchanges, including cold wallets, to Accointing. Your crypto taxes depend on all your transactions, so without connecting to your wallets, we cannot identify non-taxable transfers, and you will not be able to track the tax basis of your crypto. To connect your wallets, go to the Wallet tab in the web app dashboard, and you will see an “Add” button. From here, you can upload data from your exchanges, external wallets, or even complete data sets.
By connecting wallets, exchanges, or services through the API key, future transactions can also be integrated into the Accointing platform. This prevents you from going back and forth to connect wallets and ensures that the data you see on the platform is up-to-date and current.
Review Steps
After importing all wallets and exchanges, we will provide a step-by-step guide. Here, Accointing will show all missing data and ensure that the portfolio accurately reflects reality, so that you can create an accurate tax report.
- Unknown Currencies: New cryptocurrencies are constantly being introduced to the market, but many are not tradable or legitimate projects. Therefore, it may be necessary to manually identify specific coins and assign them to the correct currency. This step allows you to identify such coins and assign the correct currency.
- Identifying Internals: Internal transactions between two of your own wallets are not subject to taxation. We automatically identify these transactions through the transaction hash on the blockchain and will ask for your confirmation before proceeding. This type of transaction is classified as internal and has no tax relevance.
- Classify Transfers: It is important to correctly categorize your transactions to obtain an accurate tax report. Based on the available data, we can usually determine the type of deposit or withdrawal (such as mining, staking, swap, payment, liquidity pool income, etc.). However, if the information is incomplete, we will not make assumptions and instead require manual classification by the user. Some classifications may have different tax consequences depending on the country where you file your taxes.
- Missing Funds: This step shows all incomplete data in your trade history. There are two functions involved. The first section compares our computer balances with live balances. If there is a discrepancy, we will ask the taxpayer to verify it. Otherwise, users can vote on this transaction based on the missing value. The second function relates to individual trades or coin withdrawals. If information about the purchase is missing, we will ask the taxpayer to verify it. “Fix for me” balances it by creating a deposit with the missing amount.
Downloading Your Report
Everything will be set once you have completed the review steps, and you’ll be ready to download your tax report. You can always go back and correct any potential errors in your report if you’re unhappy or find that something is wrong. If you have paid to generate a tax report for that financial year, you can amend the data and redownload it as many times as necessary to ensure it is 100% accurate.
The information contained in this guide, including any supplemental materials, is for general information purposes and does not constitute financial, investment, legal, or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.
