Germany plans 25% flat crypto tax starting in 2028
The German finance ministry proposed a draft law to impose a 25% tax on cryptocurrency profits from assets acquired after January 1, 2027, potentially raising 2 billion euros annually.
A draft proposal seen by Die Welt suggests that the German Federal Ministry of Finance will transition cryptocurrency trading profits to a standard 25% flat-rate tax beginning in 2028. This new rule would apply only to digital assets acquired after January 1, 2027, while grandfathering protections would shield assets purchased before that deadline under previous taxation rules. Under current law, profits from crypto held for over 12 months are entirely tax-free, but the Ministry plans to change this status quo. Finance Minister Lars Klingbeil previously revealed that Germany expects to generate an additional 2 billion euros in revenue from crypto taxation. The proposal aims to overhaul a system where long-term holding previously exempted digital assets from all taxes. Local news outlet Die Welt first reported the draft on Wednesday, noting that Cointelegraph has approached the Finance Ministry for further details on the specific legislative text. This shift marks a significant departure from Germany's current favorable tax environment for crypto holders.
