Germany Sets Sights on 25 Percent Crypto Tax From 2027
The German Federal Ministry of Finance is preparing legislation to tax cryptocurrency gains at a flat rate of 25%, plus solidarity surcharge, for assets acquired from January 1, 2027. This proposal would end the current tax-free treatment tied to holding crypto for more than 12 months for newly acquired assets. Under the reported draft, gains on crypto acquired after December 31, 2026 would be taxed regardless of how long the assets are held.
The plan marks a significant change from Germany's current treatment of privately held crypto, which allows for tax-free sales once the holding period exceeds 12 months. Pre-2027 holdings would retain this exemption, but later-acquired crypto would face a 25% levy regardless of holding period.
The proposal follows earlier public signals from Berlin, where the government had already indicated plans to tax Bitcoin and other cryptocurrency gains more heavily and remove the existing holding period.