The Netherlands has abandoned plans to tax unrealized gains on shares, bonds and cryptocurrency after warnings that the policy could drive investors abroad. Prime Minister Rob Jetten’s coalition will instead introduce a 36% capital gains tax on realized profits, beginning in 2028 for shares, bonds and second homes and extending to cryptocurrency and foreign currencies in 2030. The change is expected to cost the government €15 billion over eight years. To recover revenue, the tax-free capital-gains allowance planned for 2028 will be reduced from €1,800 to €1,000, while entrepreneurs will receive incentives to distribute dividends. The revised proposal still requires parliamentary support because Jetten does not have a majority. It replaces the current Box 3 system, under which the tax office applies an assumed return to savings and investments, after the Supreme Court rejected the previous framework in 2021. About 2.5 million of the Netherlands’ 9.7 million taxpayers had paid the de facto wealth tax.