German Finance Ministry Proposes Capital Gains Tax on Bitcoin Purchases Starting 2027

The German Finance Ministry has proposed a draft to include Bitcoin purchased after December 31, 2026, in a withholding tax system with a 25% flat rate, totaling 26.375% including the solidarity surcharge. Starting in 2028, platforms will be required to withhold taxes at the source. If cost basis cannot be verified during transfers, the tax may apply to the entire sale amount. Holdings acquired before the deadline remain eligible for the current tax-free status after a 12-month holding period.