Germany Plans to Impose 25% Tax on Cryptocurrency Gains
The German Federal Ministry of Finance plans to amend legislation to include cryptocurrency gains in the capital gains tax system. Starting in 2028, speculative gains from cryptocurrencies such as Bitcoin and Ethereum may be taxed at a rate of 25%, while the personal tax-free allowance of €1,000 will remain. Current laws classify cryptocurrency gains as income from the sale of personal assets, which is not subject to capital gains tax. The Ministry of Finance expects that the amendment will generate an additional €350 million in tax revenue. A spokesperson from the Ministry stated that the near tax exemption for cryptocurrency speculative gains is unfair.
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