German finance ministry proposes 25% crypto tax starting 2028: report

The German Ministry of Finance is reportedly seeking to impose a 25% tax on cryptocurrencies, departing from current laws that make crypto gains tax-free after one year of holding.The German Federal Ministry of Finance reportedly issued a draft proposal to transition cryptocurrency trading profits to the standard 25% flat-rate tax starting in 2028.The ministry’s proposal would apply to all crypto assets acquired after Jan. 1, 2027, according to a draft proposal seen by local news outlet Die Welt on Wednesday.The draft also proposes grandfathering protections, meaning that digital assets bought before this deadline may be treated under the old taxation rules.Under current law, profits from crypto assets become entirely tax-free if held for over 12 months, making Germany a favorable tax destination for long-term crypto holders. Finance Minister Lars Klingbeil first revealed the country’s plans for a crypto tax overhaul at the end of April and said that Germany expects an additional 2 billion euros (about $2.3 billion) in revenue from crypto taxation.Cointelegraph has approached the Finance ministry for more details on the draft law.Related: Italy’s central bank orders sanctions scree...