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      Germany Plans 25% Capital Gains Tax on Cryptocurrency Gains by 2028

      The Federal Ministry of Finance in Germany is preparing legislation to impose a 25% capital gains tax on profits from cryptocurrencies, including popular digital assets like Bitcoin and Ethereum. This tax is set to align with the current tax rate applied to stock trading gains and is expected to take effect as early as 2028.

      Under the proposed bill, individuals will still benefit from a personal tax-free allowance of €1,000. Additionally, taxpayers will be permitted to offset gains from cryptocurrencies against losses incurred from stocks and other securities. Those with a personal tax rate below 25% may also qualify for a 'favorable assessment' to lessen their tax obligations.

      Currently, profits from the sale of cryptocurrencies held for more than one year are tax-free, while those sold within a year are subject to personal income tax rates that can reach up to 45%. The new tax will apply to crypto assets acquired after January 1, 2027, although it remains to be determined whether assets purchased before this date will receive any transitional protections. The Ministry of Finance anticipates that this tax change could generate an additional €350 million in annual tax revenue, and the bill is currently under review by other federal departments.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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