Dutch lawmakers have reopened discussions on the proposed wealth tax that would change how investors are taxed in 2028.

The proposal was designed to fix the long-standing issues that the current asset tax system presents after the court ruled that the government unfairly taxed assumed profits rather than real ones.

The New Dutch Investors Tax Reform

During the Monday debate in the ‘Tweede Kamer,’ Dutch lawmakers questioned the fairness, practicality, and complexity of the law that is intended to be passed. They directed so many questions to the outgoing State Secretary Eugène Heijnen, showing that there was a widespread concern amongst them.

State Secretary, Eugène Heijnen

According to a local news report, the proposed system would tax every individual that owns a share, bond, or digital asset based on their investment performance, even if they have not sold those assets or received cash from them.

When it was brought up, different political groups disliked this idea, arguing that people should not be taxed on money they cannot access. The government agreed to the principle but said that a payout-based system cannot be built before the proposal officially launches.

Despite the objections, several political parties have agreed to back up the law in order to avoid any further delay. Some of these parties include center-right and conservative groups, as well as some other parties that support stricter taxation of wealth, especially taxes that involve individuals.

Progressive parties are also in support of the proposal, and they argue that taxing unrealized gains is simpler and helps prevent major losses to public finances, while also opening the door to higher rates for those earning large profits from capital.

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The new law would be beneficial for property owners, as the costs related to their rental properties would be easily deductible, and tax would only apply once profits are actually received. However, those who own second homes and use them for personal use would face more additional charges.

Critics warn that the revised system may end up being even harder to understand than the one it replaces, raising doubts about whether the reform would deliver on promises of simplicity and fairness.

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