Germany Targets Tax-Free Crypto Gains with 25% Levy

Germany is set to introduce a 25% flat tax on cryptocurrency gains from 2028, potentially ending the country's long-standing exemption for Bitcoin and other digital assets held for more than one year.

The proposed rules would cover crypto assets bought after January 1, 2027, while the treatment of previously purchased holdings has yet to be decided. The Finance Ministry expects the measure to generate roughly €350 million in additional tax revenue.

Crypto gains could be offset against losses from stocks and other securities once digital assets are brought under the capital income tax system. A personal allowance is expected to remain available, with a €1,000 exemption threshold for private disposal transactions.