The German Federal Ministry of Finance has reportedly issued a draft proposal to transition cryptocurrency trading profits to a standard 25% flat-rate tax, effective from 2028. The proposal would apply to all crypto assets acquired after Jan. 1, 2027, according to a draft seen by local news outlet Die Welt. The draft also includes grandfathering protections, meaning digital assets bought before this deadline may continue to be taxed under the existing rules.
Under current law, profits from crypto assets become entirely tax-free if held for over 12 months, making Germany a favorable tax destination for long-term crypto holders. Finance Minister Lars Klingbeil first revealed the country's plans for a crypto tax overhaul at the end of April, stating that Germany expects an additional €2 billion in revenue from crypto taxation. The ministry has been approached for further details on the draft law.
