The German Ministry of Finance plans to impose a 25% capital gains tax on cryptocurrencies

According to German media Golem, the Federal Ministry of Finance is preparing a bill to include cryptocurrency gains under capital gains tax. Speculative gains from digital assets such as Bitcoin and Ethereum will be taxed at a rate of 25% starting as early as 2028, consistent with the current stock trading gains tax rate. Currently, selling crypto assets after holding them for more than a year is tax-free, while selling them within a year incurs a personal income tax rate of up to 45%.

The bill proposes to retain the personal tax-free allowance (currently €1,000 per person) and allows crypto gains to offset losses from stocks and other securities; taxpayers with a personal tax rate below 25% can also apply for a "favorable assessment" to reduce their tax burden. This tax will apply to crypto assets purchased after January 1, 2027, and it remains to be clarified by legislation whether assets held prior to this date will enjoy transitional protection. The Ministry of Finance expects this move to generate approximately €350 million in additional tax revenue each year, and the bill has been submitted to other federal departments for consultation.