Germany to Tax Long-Term Crypto Profits Starting 2027

The German government is planning to tax profits from long-term cryptocurrency investments, which are currently exempt from taxation. According to a bill drafted by the Bundesfinanzministerium, a 25% capital gains tax will apply to digital assets held for more than a year before sale.

The new law aims to start taxing profits resulting from cryptocurrency investments made from January 1, 2027 onwards. This means that holders of Bitcoin, Ethereum, or any other crypto will have to pay the state what's due from their profits, regardless of how long they kept the coins.

The coalition government plans to collect €160 million in tax revenue in 2028, which is expected to grow to €350 million by 2030. The new bill has been prepared after parties in the coalition reached an agreement to change the taxation of crypto transactions during budget negotiations in the summer.