Germany could end its favorable crypto tax regime after December 31, 2026, according to a draft law from the Finance Ministry. Currently, gains on crypto held for more than one year are tax-exempt, but the new framework would tax every sale at a flat 25% rate plus a solidarity surcharge, with a 1,000 euro annual allowance. Investors who bought before the cutoff date would retain the benefit of the old rule, while any acquisition after would be immediately subject to taxation. Berlin expects to collect 160 million euros from this measure in 2028, rising to 350 million euros by 2031. The bill must still pass through cabinet, the Bundestag, and the Bundesrat, after a similar attempt was rejected in May.
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