Germany Moves Towards Flat 25% Crypto Gains Tax
The German Finance Ministry is working on legislation to tax cryptocurrency gains at a flat rate of 25% for newly acquired assets. This change would end the current one-year holding exemption, which allows long-term holders to sell crypto without paying income tax.
According to the proposal, holdings acquired before January 1, 2027, will retain their existing treatment under the capital-income tax regime. However, investors who purchase newly acquired assets after this date will be subject to the new 25% withholding tax.
The Finance Ministry expects the crypto tax changes to raise €160 million in 2028 and about €350 million by 2031. Exchange withholding could begin from January 1, 2028, giving platforms time to build technical systems to comply with the new regulations.