Germany Plans 1 Billion Euro Crypto Tax Revenue for 2027 by Ending Exemption

Crypto Taxation Targets in the 2027 Budget

The federal government in Berlin has included specific revenue expectations from cryptocurrency in its draft budget for 2027 and the financial plan through 2030. Measures addressing financial and tax crime, including new approaches to crypto taxation, are projected to bring in an additional 1 billion euros next year. This marks the first time officials have set a concrete target for income from the crypto sector in national planning documents.

Under existing German rules, individuals who hold cryptocurrencies such as Bitcoin or Ethereum for more than 12 months can sell them without paying capital gains tax. The proposed shift would treat all profits from crypto sales as taxable investment income, removing the time-based exemption entirely.

Broader Fiscal Consolidation Efforts

This change forms one element of a larger strategy to reduce Germany’s budget deficit. The Finance Ministry focuses on cutting subsidies, eliminating various tax breaks, and strengthening controls on financial offenses. In total, these steps are set to contribute 6.2 billion euros to the 2027 budget.

Officials prepared the plan with input from the Ministry of Finance. Sources familiar with the process indicate the 1 billion euro figure aligns with recent industry estimates.

Political Discussions and Regulatory Context

The proposal still requires approval through the German parliament, with an initial reading expected in early September and a further session in mid-December. The idea of removing the crypto holding period exemption has generated debate among political parties. A previous attempt by the Greens to introduce similar measures did not succeed in the Bundestag.

The Social Democratic Party (SPD),led by Finance Minister Lars Klingbeil, backs the increase in taxation on crypto assets. The CDU-CSU alliance under Chancellor Merz has expressed general reservations about the reforms.

These developments occur alongside the completion of the EU’s Markets in Crypto-Assets (MiCA) transition period. MiCA establishes a unified regulatory structure for crypto-asset services and issuers across member states. Germany has issued the highest number of authorizations under this framework so far, though many platforms continue the licensing process.

In May, authorities introduced requirements for crypto service providers to gather and share user data with tax offices. If the new tax rules take effect, the previous advantage for long-term holders would end.