Germany plans to impose a 25% tax on cryptocurrency transaction profits starting in 2027, eliminating current tax-free holding period.
Regulation & Gov ·
Germany is moving to overhaul its cryptocurrency taxation framework by eliminating the one-year holding period that currently allows tax-free gains and replacing it with a flat 25% capital gains tax on new holdings, effective 2027. The shift would represent a significant change to how digital asset profits are treated in the country.
Under current rules, investors can realize gains without tax consequences if they hold positions for at least one year. The planned reform would instead impose a uniform 25% rate on new cryptocurrency acquisitions regardless of holding duration. According to reporting, the German Finance Ministry is behind the proposal, though the exact scope of which holdings qualify as "new" and whether existing positions would be grandfathered remains unclear.
The timing and final legislative path for this change have not been fully detailed. It is not yet known whether the measure will face parliamentary amendments, whether it applies only to individuals or also to entities, or what transition rules, if any, might govern the shift from the current exemption-based system.