Overview
- Finance Minister Lars Klingbeil said cryptocurrencies will be taxed differently, with the finance ministry set to publish detailed proposals in June.
- An official budget framework targets roughly €2 billion in extra revenue by 2027 from stricter crypto taxation and enforcement, with legislation to follow in the Bundestag and Bundesrat.
- Reports indicate the current rule that makes gains tax-free after a 12-month hold could be scrapped, with a flat tax like on stocks of about 25 percent plus surcharges under discussion.
- Tax offices have already stepped up checks on trades made within a year, and a new EU rule now forces crypto providers to report users’ transactions, holdings, and identities.
- Long-term holders would face new tax bills, short-term traders might pay less than their income tax rate, and it remains unclear whether existing holdings will be grandfathered as Austria did in 2022.