Germany Considers Taxing Long-Term Crypto Gains

Germany’s Finance Ministry is considering a draft law that would tax profits from cryptocurrencies acquired after Jan. 1, 2027, regardless of how long they are held, ending the current tax exemption for qualifying holdings sold after more than 12 months. The proposed tax rate is 25%, or 26.375% including the solidarity surcharge, with a possible additional church tax; a €1,000 saver’s allowance and loss offsets would apply. Crypto acquired before the cutoff would remain subject to the existing rules, while staking and lending income would be treated as capital income and NFTs, some stablecoins, security tokens and certain real-world-asset tokens could remain outside the regime. Automatic withholding by banks and platforms is expected from 2028, although the proposal still requires approval through Germany’s legislative process. Germany’s Sept. 2, 2026, cabinet income-tax reform draft did not include crypto provisions, so current rules and the tax treatment of 2026 sales remain unchanged; a related petition to preserve the existing holding-period rule accepts signatures until Sept. 15 without imposing a tax or investment deadline.