German Crypto Tax Plan: Revenue Drops to 160 Million Euros

The German finance ministry has released its draft bill on taxing crypto assets, estimating that it will raise around 160 million euros in revenue from 2028. This number is a significant drop from earlier estimates, which ranged as high as 11.4 billion euros.

The tax plan aims to address the fact that gains on crypto assets are currently largely untaxed. According to the ministry, this is unfair and should be rectified. The draft bill proposes a flat withholding tax of 25 percent plus solidarity surcharge for investment income from cryptocurrencies.

Short-term investors will actually benefit under the new plan, as they will pay less in taxes than before. Long-term holders, on the other hand, may face increased burdens, as their gains will be taxed at 25 percent after one year of holding.