Netherlands - Crypto penetration

intro

The Netherlands is one of the world leaders in crypto regulation. It has a very detailed crypto regulation framework. However increasing tax burden and requirements for legal entities make this country less attractive. Also based on our information Binance and some other crypto exchanges tried to start their operations in NL, but were declined.

Security level

According to our rating, the Netherlands is a safe place. The country has 73.8 points (from 100) for safety level in Numbeo crime rating(1). Homicide level (2) is 0,6 per 100,000 a year. Level of firearm-related death (3) 0,42 per 100,000 a year.

Crypto Payments

According to the crypto guide (4) of the local tax authority, it’s legally allowed to pay for goods and services in crypto.

Quote

If your company is paid for its services or deliveries in cryptocurrencies, you must convert the cryptocurrencies into euros. You add the converted amount to your turnover. When exchanging the crypto currency, the company can make a profit or a loss. This is reflected in the profit and loss account. Does your company own cryptocurrencies on the balance sheet date? If so, value it at cost price or lower market value.

Crypto Salaries

The Dutch Customs Administration has confirmed the legal status of the crypto payroll on its website (5). Wages paid by an employer via cryptocurrency are regarded the same as wages paid and are subject to tax and social payments. In this aspect NL is one of a few counties, there crypto payroll is totally legal and employer can pay the whole salary (not only bonuses) in crypto.

Legal

The DNB (DeNiederlandishenBank) was the country's primary crypto regulator for VASPs based on the Fourth Anti-Money Laundering Directive. Its position regarding crypto licenses is published on the official website (6). Based on the AML Act crypto service providers must request registration with DNB. The DNB separated crypto companies into two groups, crypto to crypto providers had softer registration procedure:

Services for the exchange between virtual and regular currencies (7)

Crypto wallets (8) - providers of such exchange services only need to register if they provide these services in a professional capacity or on a commercial basis in or from the Netherlands. Also providers of crypto-to-crypto exchange services do not need to register (9) with DNB. Moreover, DNB also licensed other crypto operations (10). In the beginning of 2024 DNB’s VASP register of crypto service providers had (12) 67 companies.

Tokensales and ICOs need special licenses only in case they are securities. In this case, they are regulated (11) by the local Financial Market Authority under the Financial Supervision Act.

However, after MiCA implementation in 2025 DNB will license only stablecoin issuers. Other CASPs, such as crypto wallet and crypto exchange will be regulated by AMF - local security regulator. Transition period for existing VASPs is relatively short - they have only 6 months up to July 2025.

If you would like to read policies, you can look at the brief of the Dutch Finance Minister about crypto regulation. According to the letter (13), the government plans to regulate DeFi NFT within a year of MiCA implementation. Notes that there are problems with trading/exchanges and that MiCA will solve them by increasing capital requirements.

Taxation

Tax name	Rate
PIT tax Min	9.28
PIT tax Max	49.5
Min Individual CGT (for crypto)	0
Max Individual CGT tax (for crypto)	31
Corporate tax (CIT)	25.8
Wealth tax Min	0
Wealth tax Max	5,69
Mining tax
TDS tax

WT and CGT

There is no capital gain tax in the Netherlands, according to Koinly (14). Unfortunately, cryptocurrency is “taxed on the presumed increase in value of assets based on the fair market value on 1 January”. The value of assets under €50,000 is tax-free. If it’s between €50,001 to €100,000, you pay 1,898%, and 4,501% for a value between €100,001 to €950,001, and 5,69% if it’s more than €950,001. However, crypto gains may be a subject of 31% CGT in some cases.

But position of local tax authority in 2024 becomes more strict. In November 2024 the parliament has discussed imposing of "exit tax" on capital gains.

PIT tax

Crypto salaries, staking rewards, and DeFi interest are subject to income tax. Tax rates (15) are between 9,28% and 49,5% for profits up to 73,031 euro. If profitable, mining revenue is subject to income tax (16) between 37.07% and 49.50%.

CIT tax

According to PWC (17), the CIT tax rate in the Netherlands is 25.8%.

Links

1) Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate.

3)List of countries by firearm-related death rate. This is a historical list of countries by firearm-related death rate per 100,000 population in the listed year

4 and 5)Cryptovaluta (zoals bitcoins). Cryptocurrency (like bitcoins).

6)Registration of crypto service providers

7)Services for the exchange between virtual and regular currencies.

8)Services for the provision of custodian wallets

9)Providers of crypto-to-crypto exchange services need not register with DNB

10)Duty to register for institutions already subject to financial supervision under legislation other than the Wwft

11)Cryptocurrency Regulation in the Netherlands—How Companies Can Stay Compliant in 2023

12) Register of crypto service providers

14 and 16)Crypto Tax Netherlands: Ultimate Guide 2023

13) Stand van zaken omtrent de regulering van crypto's. State of affairs regarding the regulation of crypto’s.

15)PWC Netherlands.

17)PWC Overview Netherlands