Germany Ends Tax Exemption on Long-Term Crypto Gains

The German Finance Ministry has drafted a bill to tax cryptocurrency gains from 2027, ending the exemption for long-term holders.

Currently, Germany grants tax-free status to individuals who hold cryptocurrencies for at least one year. However, under the new system, all gains would be subject to tax, regardless of holding period.

Cryptocurrencies acquired on or after January 1, 2027 will be taxed as capital income and subject to a flat withholding tax of 25%, plus a solidarity surcharge of 5.5%.

The new system is expected to generate around €160 million in additional tax revenue in 2028.