Germany’s 2027 Crypto Tax: 25% Rate, New Rules
Germany's finance ministry drafts a 25% flat tax on crypto gains from 2027, ending the one-year holding period exemption.
The update
Germany’s finance ministry is drafting a new tax regime for cryptocurrency. The proposal calls for a flat 25% tax on crypto gains, plus a solidarity surcharge, starting January 1, 2027. This would apply only to assets bought after that date. Current holdings acquired before 2027 would remain under existing rules.
Why it matters
Germany currently offers tax-free gains on crypto assets held for more than 12 months. The proposed change would eliminate this exemption, treating crypto profits similarly to dividends or interest. The effective tax rate would be approximately 26.375% before church tax. The change aims to align crypto assets with other forms of private capital investment.
What to watch
Automatic tax withholding is not scheduled to begin until 2028, giving platforms a year to build the necessary systems. The bill also specifies that losses can be offset against gains, including those on shares. It remains unclear how this policy might influence investor behavior or the broader European digital asset market.
Sources
- decrypt.co — Draft details, tax rate, effective date, and grandfathering provisions
- cointelegraph.com — Confirmation of the 2027 start date and revenue estimates
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