Germany's Crypto Asset Tax to Change Starting January 1, 2027

New Tax Regime The German Finance Ministry has announced a change to the tax treatment of crypto assets.
The new rule will tax all crypto gains at a flat rate of 25 %, regardless of how long the asset was held.
Removal of Current Exemption Under the existing law, profits from the sale of crypto assets held for more than one year were exempt from tax.
The proposed legislation will eliminate this exemption, applying the 25 % rate to all gains.
Retroactive Application Assets that were purchased and had completed the required holding period before the new law comes into force will be treated under the current rules and will not be affected by the new tax system.
Effective Date The change could take effect on 1 January 2027, pending the completion of Germany’s legislative process.
Impact This shift is expected to significantly affect crypto investors and market dynamics in Germany.