The Podcast of the Lotus Eaters PREVIEW: Brokenomics | Dutch Madness: Unrealised Capital Gains Tax
Mar 10, 2026
A provocative take on a looming Dutch rule that taxes unrealised capital gains at 36% annually. Short scenes unpack mark-to-market mechanics, liquidity mismatch and forced selling. Discussion focuses on harms to startups, illiquid assets and market distortions from annual valuation triggers.
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Netherlands Will Tax Paper Gains As Income
- The Dutch will tax unrealised annual capital gains at 36%, treating year-end paper increases as income.
- Dan explains this replaces the old Box 3 deemed-return model and will tax dividends, interest, rent and annual valuation changes from 2028.
Paper Gains Are Not Liquid Cash
- Taxing year-end paper gains severs market valuation from liquidity because owners may not have cash to pay the bill.
- Dan's example: a €50k stake doubling to €100k creates a €16,700 tax despite no sale or realised cash.
Volatile Gains Can Force Destructive Selling
- Dan walks through a volatility hit where a position falls from €100k to €60k after being taxed on the €50k rise.
- The taxed investor must sell, leaving €43,300 and fewer shares than at the start, destroying capital.