ChainThink reports that, on September 9, according to German media Golem, the German Federal Ministry of Finance is drafting legislation to bring cryptocurrency gains under the capital gains tax (Abgeltungsteuer). Speculative profits from digital assets such as Bitcoin and Ethereum would be taxed at a rate of 25% starting as early as 2028, aligning with the tax rate for stock trading gains.
Currently, in Germany, the sale of crypto assets held for more than one year is tax-exempt, while sales within one year are subject to personal income tax of up to 45%. The proposed legislation aims to retain the €1,000 annual tax-free allowance and permit crypto gains to be offset against losses from other securities, such as stocks.
Taxpayers with an individual tax rate below 25% may apply for a favorable assessment to reduce their tax burden. This tax applies to cryptocurrency assets acquired after January 1; whether assets held prior to this date qualify for transitional protection remains to be clarified by legislation.
The Ministry of Finance expects to increase tax revenues by approximately €350 million annually, and the bill has been submitted to other federal departments for feedback.