Germany targets tax free crypto gains with new 25% levy

Germany has prepared a 25% flat tax on cryptocurrency gains from 2028, potentially ending the country’s long-standing exemption for Bitcoin and other digital assets held for more than one year. Summary Germany plans to tax crypto gains at a flat 25% rate from 2028, replacing the current system that exempts assets held for more than one year. The proposed rules would cover crypto assets bought after Jan. 1, 2027, while the treatment of previously purchased holdings has yet to be decided. The Finance Ministry expects the measure to generate roughly €350 million in additional tax revenue. Crypto gains could be offset against losses from stocks and other securities once digital assets are brought under the capital income tax system. Der Spiegel reported that Germany’s Federal Ministry of Finance has drafted legislation that would bring crypto gains under the country’s capital income tax, or Abgeltungsteuer, putting them under the same 25% rate currently applied to gains from stocks and other securities. The planned rules would apply to crypto assets acquired after Jan. 1, 2027, while the tax itself would take effect in 2028. The draft has already been circulated among other federal min...