Germany Proposes Flat 25% Tax on Crypto Gains After 2027
Germany's Finance Ministry has proposed a flat 25% tax on cryptocurrency gains from assets acquired after January 1, 2027. This would end the current tax exemption for long-term holders of cryptocurrencies.
The draft bill, authored by Vice Chancellor and Finance Minister Lars Klingbeil, aims to classify profits from crypto sales as capital income, subject to a flat rate of 25%. This includes a solidarity surcharge of 5.5%, bringing the effective rate to approximately 26.375% before church tax.
However, the ministry's projection suggests that the change would produce €160 million in revenue during 2028, rising to €350 million annually by 2031. The bill remains in early coordination within the federal government and could be revised before it is finalized.