Germany Aims for Extra €2 Billion with Proposed Crypto Tax Hike

The German Federal Ministry of Finance has proposed a draft law to introduce a 25% tax on cryptocurrency trading profits starting from 2028. This move is part of an effort to increase revenue and align with standard taxation rules.

According to the proposal, all crypto assets acquired after January 1, 2027, will be subject to this new tax rate. However, grandfathering protections would apply, allowing digital assets bought before this deadline to remain under the old taxation rules.

The current law in Germany makes profits from crypto assets entirely tax-free if held for over 12 months, making it a favorable destination for long-term crypto holders. Finance Minister Lars Klingbeil previously revealed the country's plans for a crypto tax overhaul and expects an additional €2 billion ($2.3 billion) in revenue from crypto taxation.

Cointelegraph has reached out to the Finance ministry for more details on the draft law, but so far, there is no confirmation on whether this proposal will become a final policy.