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

According to ChainCatcher, citing German media outlet Golem, the German Federal Ministry of Finance is preparing a bill to bring cryptocurrency gains under the scope of capital gains tax. Speculative profits from digital assets such as Bitcoin and Ethereum would be taxed at a rate of 25% starting in 2028, aligning with the current tax rate on stock trading gains. Currently, Germans can sell crypto assets tax-free if held for more than one year; sales within a year are subject to personal income tax of up to 45%. The proposed bill would retain the existing personal tax-free allowance (currently €1,000 per person) and permit crypto gains to be offset against losses from other securities such as stocks. Taxpayers with personal income tax rates below 25% may also apply for a “favorable assessment” to reduce their tax burden. The tax would apply to crypto assets purchased after January 1, 2027; whether previously held assets qualify for transitional protection remains to be clarified in the final legislation. The Ministry estimates this measure could generate approximately €350 million in additional annual tax revenue, and the bill has been submitted to other federal agencies for feedback.