Germany Proposes Tax Bill for Crypto Exchanges to Withhold Taxes from 2028

The German Federal Ministry of Finance has proposed a new tax bill that will affect cryptocurrency investors from 2028. Under the draft bill, crypto exchanges and service providers will be required to withhold taxes on investment income at source.

This means that for most purchases, nothing will change initially about the duty to declare for yourself. However, deduction at source will only apply to certain providers, and self-custody will remain exempt under the draft.

The tax exemption after one year of holding will no longer be applicable for gains from crypto assets acquired or received after December 31, 2026. These holdings will be taxed at a rate of 25 percent plus the solidarity surcharge.