Germany plans 25% flat tax on crypto gains starting in 2028

Germany is pushing a plan to impose a 25% flat tax on investment gains from cryptocurrencies such as Bitcoin and Ethereum starting in 2028, Golem reported, citing Der Spiegel. According to a German Finance Ministry draft bill obtained by Der Spiegel, authorities plan to tax crypto gains at the same 25% rate applied to stock and other financial investment gains, replacing the current exemption for crypto held longer than one year. The measure would apply to cryptocurrencies acquired on or after Jan. 1, 2027, while whether the existing tax exemption will remain in place for assets acquired earlier is set to be decided during the legislative process. The current personal tax-free allowance of €1,000 ($1,170) is expected to remain in place, and the draft also includes a provision allowing crypto investment gains and losses to be offset against gains and losses from other securities such as stocks. The Finance Ministry expects the measure to generate about €350 million ($409 million) in additional tax revenue, and the draft is currently under review after being circulated to other ministries.