Germany’s Federal Ministry of Finance has reportedly proposed introducing a 25% flat-rate tax on cryptocurrency trading profits from 2028. According to a draft obtained by the German news site Die Welt, the plan would include cryptocurrency assets purchased after January 1, 2027. In addition, assets acquired before to that date may be eligible for grandfathering protection, which would keep them subject to the current tax regulations.

Source: welt.de
The proposal could significantly change Germany’s position as a relatively attractive destination for long-term crypto investors. Under the current rules, profits from crypto assets can become completely tax-free when the assets have been held for more than 12 months.
The proposed changes would therefore introduce a very different approach. Instead of the current long-term holding benefit, profits from qualifying crypto assets acquired after the January 2027 cut-off would be subject to the proposed 25% flat rate from 2028.
The grandfathering provision could be particularly important for existing investors. Digital assets acquired before January 1, 2027, may continue to receive treatment under the old taxation system. This would create a clear distinction between older holdings and crypto assets purchased after the proposed deadline.
Germany’s plans for a crypto tax overhaul are not entirely new. Finance Minister Lars Klingbeil first revealed the government’s intention to reform cryptocurrency taxation in April. At the time, he said the changes could generate an additional €2 billion, or around $2.3 billion, in government revenue from crypto taxation.

Source: x.com
If approved, the most recent plan would move cryptocurrency taxes closer to a simple flat-rate system. The reported document is still a draft proposal, though, so before they are formally introduced, the final rules may change.
The suggested cut-off date of January 1, 2027, may become crucial for German cryptocurrency investors to keep an eye on. The final legislation and its implementation guidelines will determine how long-term holdings, new purchases, and current assets are handled.
LATEST: 🇩🇪 Germany’s finance ministry has drafted a proposed plan to tax crypto profits acquired after Jan 2027 at a flat 25% starting 2028, per Die Welt. pic.twitter.com/4ZWjSXLnpQ
— CoinMarketCap (@CoinMarketCap) September 9, 2026
The action is also part of Germany’s larger initiative to boost tax income from the expanding market for digital assets. To find out exactly how the new approach would impact their cryptocurrency gains, investors must first wait for the plan to pass the legislative procedure.
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