An Expat's Guide to Cryptocurrency in the Netherlands for 2024

If you're an expat in the Netherlands, you've probably heard all the hype about cryptocurrency. Yet the world of crypto may seem overwhelming if you're new to the country and not familiar with Dutch resources. This article gives you an overview of cryptocurrency and Bitcoin in the Netherlands, key Dutch terms and valuable online sources.

The world of cryptocurrencies has taken a storm. But where does an expat start in the Netherlands? Ever since Bitcoin became a big deal, everyone's been getting in on the action, investing and keeping tabs on new regulations. The Netherlands has long been considered an innovator so it's no wonder they embraced cryptocurrency. From Bitcoin to Ethereum - the Dutch have embraced the crypto revolution. This will give you the basis of what you need to know if you're an expat in the country.

An Overview of Bitcoin for Foreign Investors

The first and most famous cryptocurrency was Bitcoin, created in 2009 by the illustrious Satoshi Nakamoto. The decentralized electronic currency Bitcoin uses blockchain to secure transactions and generate new coins. Unlike traditional currencies, Bitcoin is not regulated by a central bank. That makes it a worthwhile option for expat investors.

Bitcoin's price fluctuated greatly over time. The record high was USD 73,738.00 on March 14, 2024 and the record low was USD 67.81 on July 6, 2013. These price moves have been driven by market demand, adoption, media coverage and macroeconomic events. Research trends specific to the country by searching for Bitcoin Koers, or Bitcoin rate in English, on trusted news platforms.

Crypto Adoption in the Netherlands and Abroad

The Netherlands adopts crypto at a relatively high rate when compared to other countries. This is partly due to the country's innovative culture and its long tradition of financial services. The Dutch government also recently promoted the crypto industry. Industry insiders, including prominent law firms, have an overall positive outlook on what's to come. A few tax changes announced by the Dutch government on Budget Day will affect expats in the Netherlands. While buying power may rise slightly, it will fall far short of expectations because some tax relief measures were put off. This shows the government is being cautious given the relatively strong economy.

One change you can expect is the reduction next year of the 30% tax exemption for expats to 27%. That means expats will pay more taxes on some of their income. But there is an additional income tax bracket that will mean lower taxes for everyone on the first part of their income. All these changes reflect government efforts to balance economic growth with fiscal responsibility. Lower expat tax exemption may have some financial impact, but higher purchasing power and an extra income tax bracket may help.

Dutch financial regulator AFM is also preparing for MiCA - the new EU regulation on crypto assets. They are reviewing license applications from crypto service providers and provided guidance on how to apply. The Dutch central bank and financial regulator urge market participants to prepare for DORA - the new EU regulation on digital operational resilience. They are laser-focused on providing guidance on how to comply.

Budget Day and Crypto Taxes

Budget Day in the Dutch political calendar can have a big impact on the crypto industry. When it comes to personal taxes, the Dutch Tax Day is usually April 1st. Individual and business income tax returns are due by this date. But this date varies somewhat depending on the taxpayer. Those who live abroad have somewhat complicated tax rules in the Netherlands. For residents of the Netherlands, you usually pay tax on your worldwide income and have to file by April 30th at the latest. This includes income from cryptocurrencies.

Cryptocurrency taxation is still fairly straightforward in the Netherlands. You'll usually pay capital gains tax when you sell or trade cryptocurrency for a profit. It depends on your income. So consult with a tax professional to ensure you're following all the rules on taxes. The experts can explain the tax implications of your cryptocurrency transactions and how to report income.

Dutch Sources of Crypto Information

For information about cryptocurrency in the Dutch language, you can read some Dutch sources. These include:

• Dutch news websites: Many Dutch news sites have sections on cryptocurrency. The most common are NRC Handelsblad, De Telegraaf and AD.
• Dutch crypto exchanges: Dutch crypto exchanges often offer education and advice to their customers.
• Dutch crypto communities: There are a few Dutch crypto communities online and offline. These communities can be nifty places to learn about cryptocurrency and meet other enthusiasts.

Something covered heavily in Dutch news is the government's efforts to combat tax evasion related to cryptocurrency. This includes tracking cryptocurrency transactions and requiring people to report cryptocurrency holdings. Remember, tax laws always change. Stay informed and consult a professional to avoid penalties or legal trouble. Cryptocurrency is complicated but you must stay informed in case you live in the Netherlands and invest in any digital currency. Consult Dutch sources and reputable brokers. Learn a few key terms and you'll get a broader idea of this new financial landscape.