German finance ministry proposes 25% crypto tax starting 2028: report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The German Federal Ministry of Finance has drafted a proposal to impose a 25% flat-rate tax on cryptocurrency trading profits starting in 2028. This tax would apply to crypto assets acquired after January 1, 2027, with assets bought earlier potentially benefiting from grandfathering protections under current tax rules.
Why it matters
The proposal signifies a major shift in Germany's crypto tax policy, moving away from the current system that exempts profits on assets held longer than 12 months. The ministry expects this overhaul to generate an additional 2 billion euros in tax revenue, impacting long-term crypto holders and the broader market.
Key context
Currently, Germany offers full tax exemptions on profits from crypto assets held for more than 12 months, making it attractive for long-term investors. Finance Minister Lars Klingbeil announced plans for this tax reform in late April, highlighting the government's intention to increase revenue from the crypto sector.
Key numbers and entities
The German Federal Ministry of Finance, Finance Minister Lars Klingbeil, and the local news outlet Die Welt are central to this report. The proposed tax rate is 25%, with the goal of raising about 2 billion euros (approximately $2.3 billion) in additional revenue.
What remains unclear
The exact details and scope of the draft law, including potential exemptions or further regulatory measures, have not been fully disclosed. The Finance Ministry has not yet provided more information beyond the draft seen by the press.