Germany plans 25% flat tax on crypto gains from 2028

Germany’s Federal Ministry of Finance has drafted legislation to bring cryptocurrency gains under the country’s capital income tax (Abgeltungsteuer) at a flat 25% rate, effective from 2028.

Key provisions

• The new rate will apply to crypto assets purchased on or after 1 January 2027.
• A personal allowance of €1,000 for private disposal transactions is expected to remain.
• Gains may be offset against losses from stocks and other securities.
• Taxpayers with a personal income tax rate below 25% can request a Günstigerprüfung to apply the lower rate.

Impact on existing holdings

The treatment of crypto assets bought before 1 January 2027 has not been decided and will be addressed as the proposal progresses through parliament.

Revenue expectations

The finance ministry estimates the measure could generate roughly €350 million in additional tax revenue.

Political background

Earlier attempts to remove the one‑year holding‑period exemption failed in parliament, with opposition from several parties. The current draft follows continued work by Finance Minister Lars Klingbeil’s ministry and is pending review by other federal ministries.

Broader regulatory context

Germany has also implemented EU reporting requirements for crypto service providers and leads the EU in authorized crypto‑asset service providers, with 79 firms registered as of August.