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Germany Weighs Ending One-Year Crypto Tax Break in 2027 Budget Overhaul

The revenue push signals a shift toward taxing digital asset gains more like stocks.

Overview

  • Finance Minister Lars Klingbeil, who outlined the 2027 budget on April 29, said the government will revise crypto taxes to raise about €2 billion.
  • With no draft yet, industry and media point to the one-year exemption on private crypto gains, known as the Haltefrist, as the likeliest target.
  • Germany has tightened oversight under the EU’s DAC8 rules, with a new law since January requiring crypto service providers to report customer trades to tax authorities.
  • Officials have not made a final decision, and the government is expected to settle its plans by early July.
  • Exchanges and advocacy groups warn the change could add red tape for users and push activity abroad, citing Austria’s 2022 move to a 27.5% crypto gains tax as a cautionary example.