Germany targets tax free crypto gains with new 25% levy
Covered by 3 sources · 4 articles
Germany is moving to eliminate its longtime tax exemption for cryptocurrency holdings, replacing it with a flat 25% levy on digital asset gains starting in 2028 (one source cites 2027). The country's Finance Ministry has drafted legislation that would scrap the current rule allowing tax-free profits on crypto held beyond one year, instead treating gains as ordinary capital income. The shift represents a significant policy reversal that could reshape investment incentives while potentially bringing crypto taxation closer to traditional financial assets across the EU.
- Germany's existing tax-free window for year-plus crypto holdings ends; gains become taxable at a flat 25% rate starting 2028.
- The policy shift may both deter some investment due to new compliance burdens and accelerate others seeking to lock in gains before the rule takes effect.
- The change could set a template for broader EU crypto tax harmonization and influence how other jurisdictions structure digital asset rules.
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Germany targets tax free crypto gains with new 25% levy
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