Germany’s Federal Ministry of Finance is preparing a bill that would bring cryptocurrency gains under capital gains tax, according to German media outlet Golem. Under the proposal, speculative gains from digital assets such as Bitcoin and Ether could be taxed at 25% as early as 2028, matching the current rate applied to stock trading profits. The move would mark a major change from Germany’s existing treatment of crypto, where sales are tax-free after a one-year holding period, while assets sold within a year are subject to personal income tax at rates of up to 45%.
The draft would keep the current personal tax-free allowance of 1,000 euros per person and would also allow crypto gains to be offset against losses from stocks and other securities. Taxpayers whose personal rate is below 25% could still apply for a favorable tax assessment to reduce their burden. The proposed rules would apply to crypto assets purchased after Jan. 1, 2027, while it remains unclear whether assets acquired earlier would receive transitional protection. The finance ministry expects the measure to generate about 350 million euros in additional annual tax revenue. The bill has already been circulated to other federal ministries for comment.
Germany’s Federal Ministry of Finance is preparing a bill that would place cryptocurrency gains under capital gains tax, according to German media outlet Golem. Under the proposal, speculative gains from digital assets including Bitcoin and Ether could be taxed at 25% as early as 2028, the same rate currently applied to profits from stock trades.
How the proposal would change current tax treatment
At present, crypto assets in Germany can be sold tax-free after being held for more than one year. If they are sold within one year, the gains are taxed under personal income tax rules, with rates reaching as high as 45%.
The draft bill would keep the personal tax-free allowance, which currently stands at 1,000 euros per person. It would also allow crypto gains to be offset against losses from stocks and other securities. Taxpayers whose personal rate is below 25% could apply for a favorable tax assessment to lower their burden.
Scope and legislative status
The proposed tax would apply to crypto assets purchased after Jan. 1, 2027. It is still unclear whether assets acquired before that date would receive transitional protection, as that point remains subject to further legislative clarification.
The finance ministry expects the measure to bring in about 350 million euros in additional tax revenue each year. Golem said the bill has already been submitted to other federal ministries for review and comment.
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