Dutch finance minister Eelco Heinen has announced a dramatic reversal of the recently approved — and passionately opposed — Box 3 tax reform.
In doing so, he is conceding that the controversial levy on unrealised capital gains will be scrapped in favour of a more traditional approach.
The decision comes just weeks after the House of Representatives passed the bill, as mounting criticism from investors, business leaders and political factions forced the new centre-left government to reconsider its strategy.
The Actual Return in Box 3 Act, approved on February 12 with 93 votes, was designed to replace a deemed-return system previously struck down by the Supreme Court for violating property rights.
Under these new rules, savings and investments would be taxed at a flat 36 per cent rate based on actual yields, including annual paper gains on assets such as stocks, bonds and cryptocurrencies; a move intended to prevent further financial losses for the Treasury after years of court-ordered refunds.
Yet the reform quickly sparked outrage.
Critics argued that taxing unrealised gains could force taxpayers to sell assets to cover bills on paper profits, risking capital flight and undermining long-term investment.
Start-ups warned that taxing unsold shares held by employees and early backers would create liquidity crises, while business lobbies such as VNO-NCW condemned the regime as a deterrent to economic growth.
A particularly contentious issue was the lack of loss offsetting, with a proposed amendment by the JA21 party to allow retroactive deductions having been rejected by the ruling coalition.
In a striking admission, Heinen acknowledged that “something simply hasn’t gone right” and declared that the law “cannot pass as is”.
The government will now return to the drawing board, engaging in fresh consultations with the House of Representatives, Senate and other stakeholders to write a revised version.
Heinen has pledged to work closely with incoming State Secretary for Tax affairs Eelco Eerenberg of the D66 party, stressing the administration is “not deaf” to the public outcry.
The overhaul may include expanded loss offsetting provisions and could accelerate the transition to a realised capital gains tax, a long-term goal outlined in the January 2026 coalition agreement between D66, VVD, and CDA.
While the original plan had deferred this shift to no later than 2030, the current backlash has forced the government to reconsider its timeline.
With the Senate yet to debate the bill, there remains a window for significant amendments before the law’s planned implementation on January 1, 2028.
Heinen suggested changes could be incorporated into the upcoming Tax Plan on Prinsjesdag, the official opening of the parliamentary year, signalling a willingness to adapt to the fierce resistance.
Stakeholders, including the King’s brother, Prince Constantijn, had criticised the previously approved proposal as signalling that the Netherlands is “not open for business”, echoing concerns from figures including Elon Musk about its impact on innovation and attractiveness to talent.
A Washington Post opinion piece on February 21 sharply criticised the measure, framing it as a potential sabotage of capitalist principles in a country historically credited with pioneering modern capitalism.
On the same day, the UK newspaper the Telegraph reported investor panic over what it termed an “insane” new wealth tax, warning of possible mass exodus of capital.
A nominee for Dutch State Secretary of Finance tasked with overseeing a contentious reform of taxes on unrealised gains, has stepped down following revelations that she misrepresented her academic qualifications on her CV. https://t.co/gRuuRkV1Gt
— Brussels Signal (@brusselssignal) February 17, 2026
