Germany Plans to Introduce 25% Cryptocurrency Tax From 2028: Reports
Germany's Finance Ministry has unveiled plans to implement a 25% levy on digital currency profits, marking a significant shift from existing regulations that allow tax-free crypto earnings after a 12-month holding period.
According to reports, the German Federal Ministry of Finance has put forward a draft plan that would move cryptocurrency trading gains under the standard flat-rate tax of 25% beginning in 2028.
Based on a draft document reviewed by the German publication Die Welt on Wednesday, the ministry's proposed framework would cover all digital currency assets purchased after Jan. 1, 2027.
Additionally, the draft includes provisions for grandfathering existing holdings, which means digital currencies acquired prior to the specified cutoff date could remain subject to the existing tax framework.
Germany's existing regulations allow cryptocurrency holders to avoid taxes entirely on their gains if they maintain ownership of their digital assets for more than 12 months, positioning the country as an attractive jurisdiction for investors who favor long-term cryptocurrency holdings.
The nation's plans for restructuring cryptocurrency taxation were initially disclosed by Finance Minister Lars Klingbeil toward the conclusion of April, with projections indicating Germany could collect an additional 2 billion euros (about $2.3 billion) through the new cryptocurrency tax measures.
Cointelegraph has reached out to the Finance ministry seeking additional information regarding the draft legislation.