Germany Proposes 25% Crypto Tax Starting 2028
The German Federal Ministry of Finance has proposed a draft law that would impose a flat 25% tax on profits from cryptocurrency trading, starting in 2028. This change would apply to all crypto assets acquired after January 1, 2027, with grandfathering protections for digital assets bought before this deadline.
Under the current tax laws, profits from crypto assets become entirely tax-free if held for over 12 months, making Germany a favorable destination for long-term crypto holders. Finance Minister Lars Klingbeil had previously revealed plans to overhaul the country's crypto taxation rules, expecting an additional 2 billion euros (about $2.3 billion) in revenue.
The draft law would not affect digital assets acquired before January 1, 2027, which would still be treated under the old taxation rules. This means that long-term holders of cryptocurrencies may see their tax benefits diminished if they acquire new assets after the deadline.