Netherlands ditches wealth tax on unrealised gains and replaces it with 36% capital gains levy after exodus fears

From the Newshound archive · first published 30 September 2026 · last updated 1 October 2026.

The Netherlands has abandoned its controversial tax on unrealised investment profits after a backlash from investors and warnings of a wealth exodus, opting instead for a 36% capital gains tax on real profits. The overhaul is expected to take effect from 2028, replacing the existing system that taxed paper gains investors had not yet cashed in. The climbdown marks a significant retreat by Dutch authorities on one of Europe's most contested wealth-tax experiments.

The scrapped levy taxed investment gains on paper, meaning holders owed money before they had sold a single asset.

A 36% rate on real, realised profits will replace it — a structure critics of the old system argued was far fairer to ordinary investors.

The reversal will be watched closely by Rachel Reeves, who faces growing pressure over her own wealth-tax ambitions in the UK.