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Germany proposes 25% flat tax on cryptocurrency gains
Germany’s Federal Ministry of Finance has drafted a proposal to overhaul the taxation of cryptocurrencies, aiming to end the current tax exemption for digital assets held for more than one year. Under the proposed legislation, gains from Bitcoin, Ether, and other cryptocurrencies would be subject to a flat 25% withholding tax (Abgeltungsteuer), aligning them with traditional financial assets like stocks and funds.
The draft specifies that the new rules would apply to crypto assets acquired after December 31, 2026. Assets purchased before this cutoff date would reportedly be grandfathered under the existing system, which allows for tax-free sales if the holding period exceeds twelve months. The Ministry expects the measure to generate approximately 350 million euros in additional tax revenue.
While the proposal seeks to create a more equitable tax environment by treating speculative crypto gains similarly to other capital income, it has faced criticism from some political factions. The draft is currently undergoing review within the federal cabinet and must subsequently pass through the Bundestag and Bundesrat to become law. If implemented, banks and trading platforms would be expected to begin automatic tax withholding starting in 2028.
Entities
Bitcoin · Bundestag · Ethereum · Federal Ministry of Finance · German Federal Ministry of Finance · Germany · Lars Klingbeil
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 12 SOURCES] The draft legislation is currently undergoing review within the federal cabinet. blockzeit.com · crypto.news · www.faz.net · kriptotarca.hu · cryptonews.com.au · +7 more
- [● 15 SOURCES] The new tax system would end the current exemption for assets held for more than one year. kriptotarca.hu · www.focus.de · blockzeit.com · crypto.news · www.ibtimes.com · +8 more
- [● 7 SOURCES] A personal tax-free allowance of 1,000 euros is expected to remain. www.focus.de · crypto.news · cryptonews.com.au · bitcoinethereumnews.com · www.etailment.de · +2 more
- [● 6 SOURCES] The Ministry expects the measure to generate approximately 350 million euros in tax revenue by 2031. www.focus.de · crypto.news · www.faz.net · www.livebitcoinnews.com · www.etailment.de · +1 more
- [● 13 SOURCES] The proposed tax would apply to cryptocurrency assets acquired after December 31, 2026. kriptotarca.hu · crypto.news · www.ibtimes.com · portaldobitcoin.uol.com.br · cryptonews.com.au · +7 more
- [● 16 SOURCES] A flat 25% withholding tax would be applied to cryptocurrency gains. www.focus.de · blockzeit.com · crypto.news · cryptobriefing.com · www.faz.net · +9 more
- [● 11 SOURCES] The proposed changes would treat cryptocurrency gains similarly to stocks and funds. www.focus.de · crypto.news · www.ibtimes.com · portaldobitcoin.uol.com.br · cryptonews.com.au · +4 more
- [● 16 SOURCES] The Federal Ministry of Finance has drafted a proposal to tax cryptocurrency gains. kriptotarca.hu · www.focus.de · blockzeit.com · crypto.news · www.faz.net · +9 more