Germany plans to tax crypto gains at 25% from 2027 under draft law

Germany’s Finance Ministry is proposing to tax crypto gains at a flat 25% rate starting in 2027, ending the current rule that generally allows investors to sell crypto tax-free after holding it for more than a year. The draft legislation would bring Bitcoin, Ether and other crypto assets in line with stocks and other forms of capital income.

The proposed regime would eliminate the holding period distinction and add a solidarity surcharge to the 25% withholding tax. Investors would still benefit from the current €1,000 savings allowance, while crypto gains and losses could be offset for tax purposes. The Finance Ministry expects the reform to generate about €160 million in additional revenue in 2028, rising to €350 million annually by 2030, according to Handelsblatt.

The changes would apply to crypto acquired from Jan. 1, 2027, while assets purchased before then would remain subject to existing rules. The legislation is still in early government coordination and could change before approval. Automatic withholding by platforms would start in 2028.

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