German Finance Ministry Drafts 25% Tax on Crypto Gains From 2027
Germany is considering a draft law to tax crypto profits at a flat 25%, plus solidarity surcharge, regardless of holding period. The rule would start on Jan. 1, 2027 and apply only to crypto bought from that date; existing holdings would keep the current exemption after 12 months. Today, crypto gains are tax-free after one year, while earlier sales are taxed as income up to 42% for high earners. The proposal would treat crypto more like dividends, interest and share gains, with a €1,000 allowance and loss offsetting allowed. Lending and staking income would also be taxed as capital income. NFTs, security tokens, some stablecoins and some real-world-asset tokens would remain outside the regime. Banks would begin withholding tax in 2028. The ministry says the change reflects crypto’s growing role as private capital investment and could raise modest revenue.
