Germany Taps Crypto Investors for €350 Million
Germany is moving to end tax-free cryptocurrency gains, introducing a 25% tax from 2028. The country's Finance Ministry has drafted legislation that would classify crypto gains as capital income, aligning them with stocks and other securities.
The proposed system would remove the current one-year holding-period advantage, making long-term investors face taxation on previously exempt gains. However, short-term investors could benefit from a lower tax rate of 25%, instead of facing personal income tax rates up to 45%.
The measure is expected to generate €350 million in additional annual revenue, with projections indicating revenue could reach €160 million in 2028 and rise to €350 million by 2031. The new rules would also allow taxpayers to offset crypto losses against gains from stocks and other securities.