Germany’s Finance Ministry is reported to be drafting a change to how cryptocurrency gains are taxed, proposing a 25% capital income tax rate for gains on crypto starting in 2028 (or from 2027/2028 depending on the draft timeline cited by outlets). Gains from crypto acquired before the effective date would continue to benefit from the existing 12-month tax exemption rules.
The proposal would remove the current tax advantage that applies after a one-year holding period for some investors, while still retaining elements such as a personal allowance. Reports also say the ministry expects the measure to raise additional revenue, with one estimate putting the figure at about €350 million. Outlets differ slightly on the starting year cited, but they align that the tax applies to future crypto acquisitions or gains and is intended to broaden taxation of previously less-taxed returns.
