Germany Targets Crypto Gains with 25% Tax from 2027

The German Finance Ministry has drafted a bill that would impose a 25% tax on cryptocurrency gains from January 1, 2027. The new law would cover only assets bought after this date, with earlier holdings remaining exempt. This means anyone who already owns Bitcoin or other cryptocurrencies would not be affected by the change.

The tax would apply to all crypto gains, regardless of how long the asset was held. This is a significant departure from the current rules, which exempt profits on sales after a 12-month holding period. The ministry argues that this new approach treats cryptocurrency assets more like other forms of private capital investment, such as classic cars or artworks.

The tax would be withheld automatically by banks and platforms starting in 2028, giving them a year to build systems for handling the new requirement. The revenue generated from this tax is estimated to be around €160 million in 2028, rising to €350 million a year by 2031.