Crypto tax in the Netherlands: 1 million euros in Bitcoin, you keep it

Even in the decentralized world of crypto There is no getting around the industry: the financial administration. No matter what the outcome, people pay income taxes, even with cryptocurrency. Previously published on our website How much tax do you pay on an income of 1 million euros? However, the tax on Bitcoin (BTC) is a bit more complicated. How much tax should you pay on $1 million worth of BTC?

How much tax do people pay for $1 million in BTC?

This calculation assumes a capital of €1 million BTC. In this case, the tax amount is the return that the tax office expects from you. This is an advantage as the return is low Bitcoin can be a lot higher than what the tax authorities predict for investments.

Tax authorities expect the average investor to see a 6.17% return on their investments in 2023. No tax applies to amounts up to €57,000. This can therefore initially be deducted from the taxable capital: €1,000.00 – €57,000 = €934,000.

It is then calculated how much return and thus profit you have achieved with your bitcoins according to the assessment of the tax office. 6.17% over $934,000 is $58,183. Tax is therefore paid on the return of EUR 58,183 forecast by the tax office. Since the tax in box 3 (wealth) is 32% in 2023, this would correspond to a tax of 32% × €58,183 = €18,619. So in 2023, people will pay $18,619 in taxes on a $1 million fortune in BTC.

1 million euros crypto as heir to the parent company

In comparison, among other things, to inheritance and income tax, the calculated amount is not too bad. This is because the bitcoins are already owned by the investor. Taxes are paid on the return on the bitcoins, not the bitcoins themselves.

If you inherit €1 million in BTC from a parent, €22,918 is initially tax-exempt. The taxable income is then €977,082. You pay €181,552 in inheritance tax for this. So if you received $1 million in tokens from a parent, $818,448 would end up in your own pocket.

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