Germany Proposes a Flat 25% Tax on Crypto Gains Starting in 2027
The German Finance Ministry is drafting legislation to impose a flat tax rate of 25%, plus an additional solidarity surcharge, on profits from cryptocurrency sales starting January 1, 2027. The new rule would apply only to crypto assets acquired after that date and treats gains similarly to dividends or interest income. Currently, Germans are exempt from capital gains taxes if they hold cryptocurrencies for at least one year; the proposed change removes this holding period benefit. The tax will include a €1,000 annual exemption and allow losses to be offset against other investment gains. Income generated through staking or lending crypto would also fall under the new regime. The draft excludes certain tokens like NFTs and stablecoins from taxation. Platforms are given until 2028 before automatic tax withholding begins. The government argues that cryptocurrencies have evolved into a standard form of capital investment, making their current preferential treatment unfair compared to other taxable assets or income types.
Topics: cryptocurrency Germany policy taxation