Germany Plans 25% Tax on Crypto Gains From 2027
Germany currently treats crypto held by individuals as private-sale assets, generally allowing gains to escape tax when tokens are sold after more than one year. The exemption makes long-term crypto holding materially different from investing in shares. Moving digital assets into the 25% capital-gains framework applied to stocks would remove that advantage and mark a significant shift for retail investors, tax advisers and crypto businesses in Europe’s largest economy.
The German Finance Ministry has drafted legislation that would impose a 25% tax on crypto gains from 2027, regardless of how long an asset is held, according to reports. The proposal would abolish the existing exemption for holdings sold after more than one year. The measure still requires legislative approval, while officials estimate it could generate about 160 million euros in additional government revenue in 2028.
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The history behind this eventGermany Weighs 2027 Crypto Tax Overhaul as One-Year Holding Rule Comes Under Threat
Germany's current crypto tax regime includes a holding-period rule known as the Haltefrist. Capital gains are generally tax-free when individuals sell crypto assets after holding them for more than one year. The benefit has long encouraged investors to adopt buy-and-hold strategies, and its removal would directly affect investment costs, trading decisions and tax planning.
Germany's federal government is considering an overhaul of cryptocurrency taxation in 2027 that could abolish the current exemption for assets held longer than one year. The government estimates the new regime could add about €2 billion in federal budget revenue. The reform would also be accompanied by tighter oversight of financial crime prevention, transaction reporting and tax compliance, though the specific tax rates and implementation date have yet to be announced.
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