Do you have to file tax returns on your cryptocurrencies before 2024? Is it smart to take a screenshot of your wallet at midnight on Jan. 1? And what about tax-free assets? These questions come into play for crypto investors every year. In this article, we'll give you clarity on the tax rules surrounding your digital coins.
Crypto in box 3
Cryptocurrencies are considered assets in box 3 in the Netherlands. Besides savings, stocks and other types of assets, your crypto currencies also fall under this category. But do you always have to pay taxes on them? Not necessarily. It depends on your total assets in box 3 and the levy-free capital. In 2024, the levy free capital is €57,000 per person (or €114,000 for tax partners). If your total assets exceed this limit, you must report them to the Tax Office. If you fall below the levy free capital, you pay nothing.
Tax declaration and the reference date
To fill out your tax return correctly, you need to report the value of your cryptos on January 1, 2024 at 00:00. This is the so called reference date. Use the rate at that time from the exchange you used, such as Bitvavo or Binance. A handy tip: take a screenshot of your wallet on Jan. 1. This will help you calculate the exact value later. Didn't take a screenshot? No problem. Then use the price on the reference date to calculate the value yourself. For cryptos you have on a hardware wallet such as a Ledger, the same rule applies. Simply multiply the number of cryptos you own by the price on Jan. 1, 2024.
Debts and Minors
Your wealth is calculated as the total value of your assets minus your debts. For 2024, you can deduct debts such as student loans or credit card balances, as long as they exceed a threshold of €3,700 (€7,400 for fiscal partners). Are you a minor and own cryptocurrency? In that case, your assets are added to your parents' wealth. It’s important that your parents include your crypto holdings in their tax declaration. It's also helpful to stay abreast of the latest crypto news. Not only when it comes to developments around the crypto currencies themselves, but also with regard to new regulations
Consequences of non disclosure
If you fail to declare your cryptocurrency when required, you risk significant fines. These penalties can reach 300% of the owed tax. For example, if you owe €1,000 in taxes, the fine could be as high as €3,000. Many people unintentionally forget to report their crypto assets. Fortunately, it is still possible to file taxes for previous years. Avoid complications by keeping your records organized and accurate.
Tax rules for 2025
New rules will apply to crypto assets starting in 2025. The tax-free allowance will slightly increase to €57,684 per person (or €115,368 for partners). Additionally, the tax declaration form will include a direct question about crypto ownership. The fictional return rate for investments and other assets, including crypto, will be set at 5.88%. This percentage will be used to calculate taxes, regardless of your actual returns. Do you want to start investing in crypto now? Then we have another handy tip for you! Through this website you can buy Crypto with a 10 euro welcome bonus or as we say in Dutch, Crypto kopen met 10 euro welkomstbonus!. Dutch people are known to love free things
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