German finance ministry proposes 25% crypto tax starting 2028

The German Federal Ministry of Finance has drafted a proposal to tax cryptocurrency trading profits at a flat 25% rate beginning in 2028. The draft, seen by Die Welt, outlines that the new rate would apply to crypto assets acquired on or after January 1, 2027.

Proposed tax structure

Under the proposal, all gains from the sale or exchange of digital assets would be subject to the standard 25% flat‑rate tax, aligning crypto earnings with other investment income.

Grandfathering provisions

The draft includes a grandfathering clause: assets purchased before the January 1, 2027 cutoff would continue to be taxed under the existing regime, which exempts gains after a 12‑month holding period.

Potential revenue impact

Finance Minister Lars Klingbeil indicated that the change could generate roughly €2 billion (about $2.3 billion) in additional tax revenue for Germany.

Current tax treatment

At present, German law exempts crypto gains from tax if the assets are held for more than twelve months, making the country attractive for long‑term holders.

Next steps

Cointelegraph has reached out to the Finance Ministry for further clarification on the draft legislation.