Germany proposes 50% crypto tax basis without purchase-cost proof

  • Germany’s Federal Ministry of Finance proposed a 50% substitute basis for undocumented crypto purchases.
  • 50% of sale proceeds would be used when taxpayers lack credible acquisition-cost records.
  • The proposal is not final and affects transfers from self-custody or foreign platforms to German exchanges.

Germany’s Federal Ministry of Finance has proposed a 50% substitute assessment basis for crypto sales when taxpayers cannot provide credible purchase-cost records. The rule would assume purchases occurred after December 31, 2026, and calculate the tax basis at half of the sale proceeds. Patrick Hansen, Senior Director, EU Strategy & Policy at Circle, said the approach could particularly burden less experienced retail investors who bought at small profits or losses. Dr. David Hötzel, Associated Partner at Poellath, said the measure is not final but acknowledged significant liquidity risks, especially for transfers from self-custody wallets or foreign platforms to German exchanges. Both views emphasize the importance of reliable documentation.

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