Germany Ends Tax-Free Era for Bitcoin Starting 2027

The German government is proposing to end its tax-free era for Bitcoin and other cryptocurrencies. According to a draft law from the finance ministry, all sales of crypto assets will become taxable starting from January 1, 2027.

Currently, investors in Germany who hold their crypto assets for at least 12 months are exempt from paying taxes on profits. However, under the new proposal, every sale would be subject to a flat 25% withholding tax, similar to what is charged on shares and dividends.

The ministry argues that this change aims to eliminate an unfair advantage for speculators in the crypto market. 'It is unfair that hard-earned income and capital gains are taxed, while profits from speculation with crypto assets remain largely tax-free,' the report states.