German Finance Ministry Drafts 25% Tax on Crypto Gains From 2027

Germany’s finance ministry has drafted a bill that would tax gains on cryptocurrencies bought from Jan. 1, 2027 at a flat 25% rate plus the solidarity surcharge. Holdings acquired before that date would remain subject to the existing twelve-month exemption, keeping current long-term holders under today’s rules.

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German Finance Ministry Drafts 25% Tax on Crypto Gains From 2027

Why It Matters

The proposal would end crypto’s special tax treatment for future purchases and bring trading gains into the same capital-income framework as dividends and interest, while automatic withholding from platforms would make collection easier. The measure is forecast to raise only modest revenue and remains an internal draft that could change.

Key Facts

Draft author: Vice Chancellor and Finance Minister Lars Klingbeil (draft seen by Handelsblatt; first reported by Welt)
Effective date for new rules: January 1, 2027
Tax rate: Flat 25% on crypto gains plus 5.5% solidarity surcharge (effective 26.375% before church tax)
Scope by acquisition date: Applies only to crypto bought on or after Jan. 1, 2027; assets acquired earlier keep the twelve-month exemption
Current rule: Gains are tax-free after holding an asset for 12 months; selling inside 12 months taxed as ordinary income (up to 42% for higher earners)

Germany’s finance ministry has prepared a draft law to tax profits from cryptocurrencies purchased from Jan. 1, 2027 at a flat 25% rate, plus the statutory solidarity surcharge, according to a departmental draft dated mid-August seen by Handelsblatt and first reported by Welt. The proposal would not affect crypto acquired before that date; those holdings would remain under the existing twelve-month exemption that currently makes long-term gains tax-free.

Under the draft, crypto gains would be treated like other capital income — comparable to dividends, share profits and interest — and would therefore attract the flat levy and the 5.5% solidarity surcharge on the tax, producing an effective rate of about 26.375% before any church tax. The €1,000 saver's allowance would still apply, and losses on crypto could be offset against gains, including those from shares. The document also says income from staking and lending would fall into the capital-income category. Certain asset types, including NFTs, security tokens and some stablecoins and real-world-asset tokens, would remain outside the proposed regime.

The draft foresees a phased approach to collection: platforms and banks would begin withholding the tax automatically from 2028, giving providers a year to adapt systems. When crypto move between platforms, providers could rely on purchase prices and acquisition dates supplied by customers; if those records are not provided, the flat rate would be applied regardless. The ministry framed the change as closing a preferential treatment for crypto, saying it is unfair for other income and capital gains to be taxed while many crypto profits remain largely untaxed.

The government expects limited revenue from the change, projecting roughly €160 million in 2028 rising to about €350 million annually by 2031. The draft is still in early coordination within the federal government and may be altered before any formal bill is published; lawmakers from the Union and SPD had already agreed to tax crypto in summer budget talks.