Germany Plans to Remove 1-Year Crypto Tax Exemption, Introducing 25% Tax on Gains

Current Situation Individual investors in Germany are currently exempt from tax on gains from the sale of crypto assets held for more than one year.
Proposed Changes The draft legislation will, starting in 2027, abolish the one‑year holding exemption for Bitcoin and other cryptocurrencies and introduce a 25% capital‑gain tax on profits.
The aim is to align crypto gains with the tax treatment of stocks and other capital investments.
Implementation Timeline The change will apply to crypto assets purchased after 31 December 2026.
Existing holdings will remain subject to current rules.
The law is expected to take effect on 1 January 2027, with a transition period until 1 January 2028 during which crypto platforms would automatically withhold tax on behalf of investors.
Expected Impact The German government anticipates increased public revenue.
According to the Ministry of Finance, the reform could generate roughly €160 million in additional tax revenue in 2028, rising to about €350 million annually by 2031.
Legal Process The draft is not yet law and is still in early coordination within the government.
Amendments may be made during the legislative process.