Germany is proposing a major shift in how crypto is taxed, and the core change is about timing. Up to now, the rule has been straightforward: if you hold Bitcoin or other crypto for more than a year, any gains are tax-free when you sell. The finance ministry’s new draft bill, released on September 30, would keep that benefit only for tokens acquired on or before December 31, 2026. Starting January 1, 2027, new purchases would instead be taxed as capital income, a flat 25% withholding, plus the solidarity surcharge.
That means if you buy Bitcoin before the cut-off, you still get the one-year tax-free option. If you buy after, the strategy changes, waiting out a holding period won’t avoid taxes anymore. The draft plans for banks and crypto platforms to start withholding tax automatically from 2028, so having accurate records of when and what you bought becomes even more important. The practical effect is that investors focused on the old tax benefit may rush to make purchases before the deadline, while longer-term, the window for true tax-free crypto gains tightens significantly.
The bill is still being reviewed, so details could shift, but the proposed line between pre-2027 and later holdings is now clear.