Germany Proposes 25% Capital-Income Tax on Crypto Gains from 2027

Germany is considering taxing gains from crypto assets under its capital-income tax regime. The proposed 25% tax rate would apply to post-2026 purchases, ending the one-year exemption for new holdings while leaving older holdings under the current rules.

The Finance Ministry's draft plan would bring realized gains into the 25% tax regime regardless of the holding period. This means that investors who hold crypto assets for more than a year may still be subject to capital-income tax, which could increase the effective rate with solidarity surcharge and church tax.

The proposal would preserve the existing treatment for assets bought before January 1, 2027. Crypto acquired from that date would enter the proposed capital-income regime, potentially leading to different tax treatment for two purchases of the same token based on their acquisition dates.