Germany to Impose 25% Tax on Crypto Gains Starting 2028
Germany plans to tax long-term crypto gains at a flat 25% rate beginning in 2028.
Germany’s Finance Ministry proposes a 25% flat tax on cryptocurrency gains from 2028. This move ends the current tax-free period for assets held beyond 12 months.
The draft proposal was reported by Die Welt. It targets assets acquired on or after January 1, 2027. Investors who bought crypto before this date may keep existing benefits.
Revenue Impact of New Rules
The government expects to collect $2.3 billion in additional revenue. This figure assumes the new rules apply broadly to the market. The change aligns Germany with other European jurisdictions.
Shift in Investor Strategy
Current rules favor long-term holders of Bitcoin and other digital assets. The new regime removes this specific advantage. Market participants in GN markets/crypto (en-US) are monitoring the legislative process closely.
Grandfathering Clause for Early Buyers
Assets purchased before January 1, 2027, remain under the old rules. This clause protects existing portfolios from immediate tax changes. Only new acquisitions face the 25% rate upon sale.
