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Germany plans to end tax-free crypto gains for new purchases
A draft bill would make gains on crypto bought after Dec. 31, 2026 taxable regardless of holding period, with providers starting withholding in 2028.
Germany is preparing to change its tax treatment of cryptocurrency gains, moving to tax gains on crypto acquired after Dec. 31, 2026 regardless of how long investors hold the assets, according to CoinDesk citing a DTS report and German newspaper Die Welt.
Under the proposal, existing crypto holdings would keep the current rules, including the ability for private investors to sell after a 12-month holding period without paying tax. The change would also classify income from crypto lending and staking as capital income.
The Finance Ministry expects the measure to raise about 160 million euros in additional tax revenue in 2028 and roughly 350 million euros a year by 2031. The draft bill would take effect in January 2027, with crypto providers required to begin withholding taxes automatically in 2028.
Germany’s Abgeltungsteuer regime generally applies a 25% flat withholding rate plus a 5.5% solidarity surcharge, for an effective 26.375% rate before any church tax. CoinDesk reports that NFTs, some stablecoins, security tokens, and certain token types tied to real-world assets would remain outside the new regime, and that short-term traders could benefit because they would be shifted from personal income tax with a 45% ceiling to the flat system.