Germany’s Federal Ministry of Finance is reportedly pushing a draft plan that would bring cryptocurrency trading profits under the country’s standard 25% flat tax beginning in 2028. According to a draft seen by local outlet Die Welt, the proposed rule would apply to all crypto assets acquired after Jan. 1, 2027, marking a clear break from Germany’s current tax treatment for long-term holders.
Under existing law, gains from crypto assets become fully tax-free once they have been held for more than 12 months, a rule that has helped make Germany relatively attractive for investors with longer time horizons. The draft proposal also includes grandfathering protections, meaning digital assets purchased before the cutoff date may still be taxed under the old regime.
Finance Minister Lars Klingbeil first disclosed the government’s intention to overhaul crypto taxation at the end of April. At the time, he said Germany expected to raise an additional 2 billion euros, or about $2.3 billion, from crypto taxes. Cointelegraph said it had contacted the Finance Ministry for more details on the draft law.
Germany’s Federal Ministry of Finance is reportedly seeking to impose a 25% tax on cryptocurrencies from 2028, a move that would replace the country’s current tax benefit for long-term holders.
According to a draft proposal seen by German outlet Die Welt on Wednesday, the ministry wants cryptocurrency trading profits to be taxed at the standard 25% flat rate starting in 2028.
The proposal would cover crypto bought after Jan. 1, 2027
The draft says the new tax treatment would apply to all crypto assets acquired after Jan. 1, 2027.
It also includes grandfathering protections, which means digital assets purchased before that date may remain subject to the previous tax rules.
Current law exempts gains after a 12-month holding period
Under Germany’s current framework, profits from crypto assets become fully tax-free once the assets have been held for more than 12 months. That rule has made Germany a favorable tax jurisdiction for long-term crypto holders.
Klingbeil outlined the overhaul plan in late April
Finance Minister Lars Klingbeil first disclosed the country’s plans for a crypto tax overhaul at the end of April. He said Germany expected to generate an additional 2 billion euros, or about $2.3 billion, in revenue from crypto taxation.
Cointelegraph said it had contacted the Finance Ministry for more information on the draft law.
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