Germany Eyes End to Crypto Tax Haven Status
The German government is proposing to end one of Europe's biggest tax advantages for long-term crypto holders. A draft proposal suggests introducing a 25% flat tax on crypto gains from 2028, as reported by Die Welt.
Currently, individuals can sell crypto without paying taxes after holding it for more than 12 months, making Germany an attractive destination for investors. The proposed regime would apply to crypto assets acquired from January 1, 2027, while existing rules could be grandfathered in for assets bought before then.
The change is expected to bring in an additional $2.3 billion in revenue for the German government. This move would effectively remove Germany's tax advantage and align its treatment of crypto gains with other major European markets that tax regardless of holding period.