Germany drafts 25% tax on crypto gains from 2027, ending one-year exemption

Germany’s Finance Ministry is drafting a tax change that would apply a 25% capital gains tax to crypto profits from 2027, matching the rate used for stock gains. According to a legal draft obtained by Handelsblatt, the proposal would remove the current tax exemption for crypto assets sold after more than 12 months of holding.

One-year tax exemption would be removed

Germany’s current system has been relatively favorable to crypto holders. Under the existing rule, investors can sell crypto assets after holding them for more than 12 months and pay no tax on the profit. The draft would end that treatment and tax gains regardless of how long the asset was held.

For long-term holders, that would mark a clear shift. Under the current rule, waiting out the one-year period allows investors to exit tax-free. Under the draft, each realized gain would be taxed at 25%, in line with stock investment profits.

Revenue estimates in the draft

The draft includes tax revenue estimates of about €160 million in 2028 and €350 million in 2030.

Finance minister’s stated rationale

Vice Chancellor and Finance Minister Lars Klingbeil said in the draft that crypto assets have increasingly become a form of private capital investment. He wrote, 「Income earned through work and capital gains are taxed, while speculative profits from crypto assets are largely tax-free. That is not fair.」

Still at the draft stage

The document was obtained by Handelsblatt and was first disclosed by Die Welt. It has not completed the legislative process, and its final scope, detailed rules, and effective date could still change during further review.