How to Sell Crypto in the Netherlands in 2022

How to Sell Crypto in the Netherlands

Today, we’ll take a look at some of the regulations, what the tax authorities expect of crypto investors or any virtual currency trading company, and just how you may sell your crypto & Bitcoin in the Netherlands.

How to Sell Bitcoin and other Cryptocurrencies in the Netherlands

Cryptocurrencies such as Bitcoin and Ethereum can be sold via reputable crypto exchanges, peer-to-peer (P2P) platforms, and any Bitcoin ATM that supports cash withdrawal. A key selling point to look out for when trying to sell your digital assets will be platforms that support cryptocurrency to euros conversion (i.e BTC/EUR pairing).

Binance – one of the popular exchanges in the crypto market – have recently suspended euro deposits on its platform having faced a new regulatory crackdown, withdrawals in euros, however, are still permitted and some popular exchanges operating in the Netherlands support converting your cryptocurrency into euros as well.

The Netherlands New Crypto Regulations

In a bid to minimize the market risk associated with cryptocurrencies for dutch customers as well as consolidate its anti-money laundering practices, the Dutch government published new laws targeting crypto exchanges and wallet providers.

The new crypto regulations enforced in late 2020 by the DNB (the Dutch central bank) imposed additional registration and verification requirements on crypto exchanges and wallet providers in the country.

However, following Bitonic’s (a dutch digital coins exchange platform) legal action against the central bank and these registration requirements, the DNB has acknowledged its wrongfulness in imposing the intensive verification requirements and considers the dutch company’s concerns justified. 

In light of this, the national authorities have updated their statement and are expected to further review its regulations.

Taxation of Cryptocurrencies in the Netherlands

Although Bitcoins and other cryptocurrencies are not considered legal tender in Netherland, they are taxed depending on three main factors and the tax authorities expect that you declare crypto assets in your annual Dutch tax return. 

How you may declare your digital currency, and just how much is taxed depends on the owner and the usage of the crypto. For example, a Dutch BV (private limited liability company) purchased or mined is considered the company’s capital, and its earnings on such crypto assets are considered taxable profit.

Crypto Capital Gains Tax in the Netherlands

In the Netherlands you do not have to pay any capital gains tax on crypto, however, you may have to pay a ‘wealth tax’, also called Vermogensbelasting, past a certain threshold. This kind of tax system can seem a little confusing at times, so let’s try to break it down a bit.

The Netherlands classifies cryptocurrency as an asset, not as property. As such, cryptocurrency is taken into account when considering the wealth tax of your total assets, and if exceeding the threshold of 50,000 euros, then you will have to pay a rate of 31%. This increases when entering different levels of total assets. This tax is exacted via the accounted yield of all your assets, both crypto, and non-crypto, at a fixed percentage. Irrelevant to your actual income.

This makes the Netherlands’ approach to crypto different from some other EU nations, in which they view crypto as property, and as such its levied tax is only applicable after you’ve sold it.
Crypto taxation in the Netherlands can be broken into different categories, each of which will require its own consideration and analysis and a detailed breakdown of this system can be found here.