Germany Aims 25% Flat Tax on New Crypto Gains from 2027
Germany is planning to shift its crypto taxation from 2027, targeting a 25% rate on new crypto gains. The Finance Ministry has prepared a draft that would place new crypto purchases under a 25% capital income tax rate, ending the current tax-free treatment for long-term holders after one year.
The proposal would apply to crypto acquired after December 31, 2026, while existing holdings would keep the earlier rules. Automatic withholding by crypto service providers would begin in 2028, giving them time to build systems for calculating gains and collecting tax.
The draft is based on a 25% capital income scheme, which is different from the personal income tax rate used by the Greens' previous proposal. The government estimates an extra tax revenue of €160 million in 2028, increasing to €350 million by 2030.