German finance ministry proposes 25% crypto tax starting 2028: Report
The German Ministry of Finance is reportedly seeking to impose a 25% tax on cryptocurrencies, departing from current laws that make crypto gains tax-free after one year of holding.
The German Ministry of Finance is reportedly considering a proposal to impose a 25% tax on cryptocurrencies, deviating from the existing laws that currently exempt crypto gains from taxation after one year of holding. According to a draft proposal obtained by local news outlet Die Welt, the German Federal Ministry of Finance plans to make cryptocurrency trading profits subject to the standard 25% flat-rate tax starting in 2028. The proposal specifically applies to all crypto assets acquired after January 1, 2027.
Moreover, the draft includes provisions to grandfather protections, ensuring that digital assets purchased before the deadline can still be taxed under the previous regulations. Under the current law, profits from crypto assets become entirely tax-free if held for over 12 months, which makes Germany an attractive destination for long-term crypto holders.
Finance Minister Lars Klingbeil disclosed the country's plans for a crypto tax overhaul at the end of April, stating that Germany anticipates an additional 2 billion euros (approximately $2.3 billion) in revenue from crypto taxation.
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