Germany Mulls 25% Flat Tax on Cryptocurrency Gains Starting 2028
Germany's Finance Ministry has proposed introducing a 25% flat tax on cryptocurrency gains starting in 2028. This move would affect digital assets purchased on or after January 1, 2027.
The current tax framework allows investors to sell their cryptocurrencies after maintaining ownership for over one year without incurring any tax liability. However, under the proposed system, all cryptocurrency holdings acquired from 2027 onwards would be subject to a 25% flat tax rate, regardless of how long they have been held.
The revenue generated from this tax reform is estimated to be around €350 million. This move would also integrate cryptocurrency into Germany's established capital gains tax structure, which currently governs profits from equity investments and other financial securities.