Germany moves to tax crypto profits at 25% from 2028
Regulation & Gov ·
A draft proposal from Germany's finance ministry would scrap the country's tax-free treatment of long-held crypto and apply a flat capital gains rate instead.
The German Federal Ministry of Finance has put forward a draft law that would subject cryptocurrency profits to the standard 25% flat tax rate beginning in 2028, according to a proposal reviewed by a local outlet and reported by Cointelegraph. The measure would apply specifically to digital assets acquired on or after January 1, 2027, while coins purchased before that date could still fall under existing rules through grandfathering provisions.
The change would mark a significant departure from Germany's current tax framework, under which crypto gains become fully exempt once an asset has been held for more than a year. That policy has helped position the country as an attractive base for long-term crypto investors within the EU. Under the new draft, a €1,000 personal exemption would remain in place, but gains above that threshold would be taxed at the flat 25% rate regardless of how long the asset was held.
The push for reform is not new. Finance Minister Lars Klingbeil signaled the government's intent to overhaul crypto taxation in late April, citing an expected 2 billion euros, roughly $2.3 billion, in additional revenue the state anticipates collecting once the new regime takes effect.
A separate account of the same plan describes the tax taking effect in 2027 rather than 2028, pointing to some inconsistency in reporting on the exact start date and whether that year marks the tax's implementation or simply the cutoff for asset eligibility. Cointelegraph noted it had contacted the finance ministry for further clarification on the draft's details, which have not yet been finalized or formally introduced as legislation.
What remains unresolved is whether the proposal will pass through Germany's legislative process unchanged, and how the shift might influence retail holding behavior in one of the EU's larger crypto markets, or whether other member states will look to Berlin's approach as a template for their own tax policy.