Germany plans to impose a 25% tax on Bitcoin purchases after 2027, with platform withholding and payment starting from 2028

The German Ministry of Finance proposes that Bitcoin purchased after December 31, 2026, be subject to a unified capital gains tax of 25%, with a combined tax rate of 26.375% after the solidarity surcharge. Starting from 2028, trading platforms will withhold and pay taxes on behalf of Bitcoin buyers. If the holding cost cannot be provided when transferring Bitcoin to other platforms, a 25% tax rate applies to the entire sale amount. Bitcoin purchased before the deadline is subject to a tax exemption policy for holding for at least one year. Currently, individuals in Germany who hold Bitcoin for at least 12 months are exempt from paying taxes. (Source: Bitcoin News)