German finance ministry proposes 25% crypto tax starting 2028: Report

A draft proposal from the German Federal Ministry of Finance would bring cryptocurrency trading gains into the country's standard 25% flat tax regime, with the change scheduled to take effect in 2028. According to a copy of the draft reported by Die Welt, the rule would apply to digital assets purchased on or after Jan. 1, 2027.

The ministry's text includes grandfathering protections, so tokens and coins acquired before the January 2027 cutoff could remain subject to the current taxation framework. Under existing law, profits on crypto holdings become exempt from tax once the asset has been held for more than a year, a feature that has made Germany relatively attractive for long-term crypto investors.

Finance Minister Lars Klingbeil disclosed the government's intention to revise crypto taxation at the end of April and indicated the reform could yield about €2 billion in additional revenue. The draft reported by Die Welt lays out the timetable and scope of the shift but does not yet constitute final legislation.

Cointelegraph contacted the Finance Ministry for further information about the draft proposal. The reporting outlet published its story after reviewing the document seen by its journalists; further details and any formal legislative steps from the ministry have not been published in the draft report.