⚡️🇳🇱 NEW - Dutch Parliament Member Michel Hoogeveen explains how the 36% unrealized capital gains tax, just passed by the House of Representatives, will work.

Here is a more detailed example:

➥ Step 1. Starting position
You own 500 shares.

Value on Jan 1, 2028: €50,000
Value on Jan 1, 2029: €100,000

So the paper gain is:

€100,000 − €50,000 = €50,000 unrealized profit

You did not sell. But for tax purposes, that €50,000 is treated as income.

➥ Step 2. Apply exemption
You are married, so you get a €3,600 exemption.

€50,000 − €3,600 = €46,400 taxable amount

Tax rate: 36%

€46,400 × 36% = €16,704 tax bill

That bill is due in May, even though you never sold anything.

➥ Step 3. Market falls before you pay
Now suppose by May the shares drop in value.

New total value: €60,000

So your portfolio is no longer worth €100,000. It’s worth €60,000.

But the tax bill is still €16,704, because it was calculated based on the January 1 valuation.

➥ Step 4. You must sell shares to pay tax
To raise €16,704, you sell part of your shares.

After paying the tax, you’re left with:

€60,000 − €16,704 = €43,296

Originally you had 500 shares.
Now you have 360 shares left.

You were forced to sell 140 shares.

140 ÷ 500 = 28% of your shares gone.

➥ Step 5. What happened economically?

Before the correction:
Paper gain was €50,000.

After the correction:
Portfolio is worth €60,000.
Original cost basis was €50,000.
Real gain is only €10,000.

But you paid €16,704 in tax.

So instead of being up €10,000, you are now:

€43,296 − €50,000 = €6,704 below your original starting value.

You turned a €10,000 real gain into a €6,704 net loss.

And you lost 28% of your shares permanently.