1305 How Europe is Designing a Tax System You Can't Escape

11 Mar 2026The Netherlands will tax unrealised capital gains at 36% starting January 2028, a move driven by fiscal pressures and a previous unconstitutional tax system. This aggressive approach, which taxes paper gains regardless of liquidity, could trigger capital flight and is being closely monitored by other EU nations. While wealth taxes are being implemented, energy taxes, particularly on households, represent the most significant revenue extraction mechanism in the EU.The EU faces a structural challenge with a shrinking working-age population and increasing debt, leading to a reliance on wealth taxes. This includes national measures like the Dutch unrealised gains tax and EU-level proposals for direct taxation on emissions trading, carbon border adjustments, and corporate profits. The shift towards wealth extraction is driven by demographic changes, fiscal constraints, and the need to fund EU-wide initiatives like the CO2 recovery debt.