Germany Plans 25% Capital Gains Tax on Crypto Profits Starting in 2028

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Germany plans to tax crypto market profits at 25% starting in 2028, according to a draft by the Federal Ministry of Finance. The proposal would align crypto taxation with stock trading rules, taxing gains exceeding 1,000 euros. Currently, profits from crypto held for more than a year are tax-free. This change applies to Bitcoin, Ethereum, and other digital assets.

Huoxing Finance reports that on September 9, according to German tech media Golem, the German federal government plans to impose a 25% capital gains tax on cryptocurrency profits. According to a draft government bill, the Federal Ministry of Finance has prepared legislation to include cryptocurrency gains within the scope of capital gains taxation. Under the draft, speculative gains from digital assets such as Bitcoin and Ethereum will be taxed at a rate of 25% starting in 2028—a rate identical to that currently applied to stock trading profits. This so-called "crypto tax" represents a significant shift in Germany’s cryptocurrency tax policy: currently, profits from holding cryptocurrencies for more than one year are tax-exempt. The personal tax-free allowance is expected to remain in place, similar to current rules, with the current individual exemption threshold set at €1,000.

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