Germany Plans 25% Tax on Crypto Gains Starting in 2027

The German finance ministry is preparing a draft law that would levy a 25% tax on gains from cryptocurrency transactions beginning in 2027. The proposal maintains the existing twelve‑month holding period exemption for assets acquired before the tax takes effect, meaning only future purchases would be subject to the new rate.

Key Provisions of the Draft

• Tax rate: 25% on net crypto gains realized after 2027.
• Exemption: The current twelve‑month holding period exemption remains for crypto bought before 2027.
• Scope: Applies to all private individuals trading cryptocurrencies, regardless of the specific token.

Impact on Investors

Investors who acquire crypto assets after the law’s effective date will need to account for the higher tax burden on any subsequent profit. Those holding assets purchased prior to 2027 retain the ability to sell after a twelve‑month period without incurring tax.

Next Steps

The draft will undergo parliamentary review before becoming law. Stakeholders are expected to provide feedback during the legislative process.