Germany Proposes Tax Overhaul for Crypto Assets in 2027
The German government is preparing to overhaul tax laws regarding cryptocurrencies. A draft law developed by the Ministry of Finance proposes new taxation rules for Bitcoin, Ethereum, and other crypto assets, set to take effect on January 1, 2027.
Currently, Germany exempts profits from sales of crypto assets held for more than 12 months from taxes. The new draft law would abolish this exemption for assets acquired after December 31, 2026, treating profits as capital income and taxing them at the standard Abgeltungsteuer rate.
The changes primarily affect Bitcoin and Ethereum, as well as other exchange cryptocurrencies. However, NFTs, security tokens, and certain stablecoins will remain under the current rules if they provide real value or have a special status.