Germany's Finance Ministry has drafted legislation to apply a 25% capital-income tax to gains on crypto assets acquired from January 1, 2027, ending the current exemption for private holdings sold after more than one year. Existing reporting says the 25% levy would also carry Germany's 5.5% solidarity surcharge, producing an effective 26.375% rate before church tax, although the latest account describes the proposal as a 25% flat rate. The draft is reported to preserve current treatment for assets acquired by December 31, 2026, but the latest report says this transition treatment has not been officially clarified. The proposal would allow crypto losses to be offset against losses from shares and other securities, retain a €1,000 allowance and bring crypto within the Abgeltungsteuer system. It remains under interdepartmental review and requires cabinet and parliamentary approval. Revenue is projected at about €350 million annually by 2031, while the broader tax-enforcement initiative was initially presented as targeting €2 billion in additional revenue.