Germany Slams Brakes on Tax-Free Crypto Gains
Germany is moving towards a major overhaul of its crypto taxation framework. The country's Finance Ministry has drafted legislation that would classify cryptocurrency gains as capital income, bringing digital assets in line with stocks and other securities.
Under the proposed system, cryptocurrencies acquired after January 1, 2027, would be subject to a flat tax rate of 25% on all gains from 2028. This means long-term crypto investors who previously qualified for an exemption on their gains could face taxation where they previously didn't.
The Finance Ministry expects the measure to generate approximately €350 million in additional annual revenue. The proposal follows months of discussion over Germany's crypto tax framework, and it is part of a broader effort targeting tax fraud, money laundering, and undeclared economic activity.