Germany Eyes 25% Crypto Tax Starting 2028 Amid Revenue Targets

The German Federal Ministry of Finance has proposed a new tax plan for cryptocurrency trading profits. According to a draft proposal, all crypto assets acquired after January 1, 2027 will be subject to a 25% flat-rate tax starting in 2028.

The ministry's proposal also includes grandfathering protections, which means that digital assets bought before the deadline will still be treated under the old taxation rules. This is a significant change from current law, where profits from crypto assets held for over 12 months are entirely tax-free, making Germany an attractive destination for long-term crypto holders.

The proposal aims to bring in additional revenue for the government, with Finance Minister Lars Klingbeil expecting an extra €2 billion (approximately $2.3 billion) in tax revenue from cryptocurrency taxation. The ministry has not released further details on the draft law yet.