Germany Targets 25% Crypto Tax Rate Starting 2028

Germany's Finance Ministry has drafted a proposal to tax cryptocurrency gains at a flat 25% rate starting from 2028. The new rules will apply to digital assets bought after January 1, 2027, and are aimed at raising around €350 million in additional revenue.

The current law exempts crypto held for more than one year from any tax, but the proposal would bring crypto under Germany's existing capital income tax system. This means that investors will be taxed on their gains, regardless of how long they have held onto them.

The government expects the measure to raise around €350 million in additional revenue, and Finance Minister Lars Klingbeil has confirmed that officials are preparing a concrete bill. The draft has now been circulated to other federal ministries for review and must pass through the cabinet and Germany's full parliamentary process before becoming law.