The German government plans to impose a 25% capital gains tax on cryptocurrency profits.

BlockBeats News, September 9 - According to German tech media outlet Golem, the German federal government plans to impose a 25% capital gains tax on cryptocurrency profits. A draft government bill indicates that the German Federal Ministry of Finance has prepared legislation to include cryptocurrency gains within the scope of capital gains taxation.

Under the draft, speculative gains from digital assets such as Bitcoin and Ethereum will be taxed at a rate of 25% starting in 2028. This rate aligns with the current tax rate applied to stock trading profits.

The so-called "crypto tax" would mark a significant shift in Germany's cryptocurrency tax policy: currently, gains from holding cryptocurrencies for more than one year are tax-exempt. The personal exemption allowance is expected to remain, similar to existing regulations. The current tax-free threshold per individual stands at €1,000.