Germany proposes 25% tax on crypto gains from 2028
Germany plans new crypto tax
The German Ministry of Finance has drafted a plan to tax cryptocurrency profits at a flat rate of 25 % starting in 2028. The proposal would end the current rule that makes crypto gains tax‑free after a year of holding.
Key details
- Flat tax rate of 25 % on crypto profits.
- Applies to assets bought after 1 January 2027.
- Assets purchased before that date keep the current tax‑free rule.
- Current law makes gains tax‑free after 12 months of holding.
- Finance Minister Lars Klingbeil says the change could raise about €2 billion.
Draft proposal
The Ministry of Finance released a draft that would move crypto trading profits into the standard 25 % flat‑rate tax starting in 2028. The draft, seen by Die Welt, also includes a “grandfathering” clause for assets acquired before 1 January 2027.
Minister’s remarks
At the end of April, Finance Minister Lars Klingbeil announced the planned overhaul and estimated the new tax could generate roughly €2 billion (about $2.3 billion) in additional revenue.
Confirmed facts
- The draft proposal exists and was reported by Die Welt.
- Tax rate proposed is 25 % flat.
- Effective date for assets is 1 January 2027, with tax starting 2028.
- Grandfathering clause is included.
- Current tax‑free rule is 12 months holding.
- Lars Klingbeil gave the revenue estimate.
Open questions
- Exact legislative timeline for adopting the proposal.
- Whether the €2 billion revenue estimate will be confirmed after debate.
Why it matters
Germany has been a popular place for long‑term crypto holders because of the tax‑free period. Changing to a flat tax could affect investors’ decisions and increase government revenue.
Next steps
The draft must be discussed and approved by the German parliament before it becomes law.
