Federal Finance Minister Lars Klingbeil is proposing to tax crypto gains at a flat 25% rate starting in 2027, ending the current rule that generally allows investors to sell crypto tax-free after holding it for more than a year, Handelsblatt reported Wednesday.
Under the proposed rules, profits from selling Bitcoin, Ether, and other crypto assets would face a 25% withholding tax, plus a solidarity surcharge, similar to the treatment of gains from stocks, dividends and interest.
Investors would still benefit from the current €1,000 savings allowance, while crypto gains and losses could be offset for tax purposes. The Finance Ministry expects the reform to generate about €160 million in additional revenue in 2028, rising to €350 million annually by 2030.
The legislation is expected to take effect on January 1, 2027, and would cover crypto assets purchased from that date onward, while assets bought before the cutoff would remain subject to the existing rules.
Automatic tax withholding would begin in 2028. Banks and other financial service providers would be responsible for collecting the tax and paying it directly to the authorities. According to the Finance Ministry, the additional year is intended to allow trading platforms and financial firms to build the necessary technical infrastructure.
