Media: Germany Will Change Crypto Asset Tax Rules Starting in 2027

• The German government has drafted a bill that would tax profits from selling bitcoin and Ethereum regardless of the holding period.
• The new rules will apply to crypto assets purchased or received after December 31, 2026.
• Assets acquired earlier will remain under the current regime. After a year of holding, profits from their sale will continue to be tax-exempt.

The German government has prepared a reform of crypto-asset taxation that introduces new rules for bitcoin, Ethereum, and other assets starting in 2027. German outlet WELT reported the details of the draft bill after gaining access to a document from the Ministry of Finance.

Under the proposal, profits from the sale of so-called exchange crypto assets would be taxed going forward regardless of how long an investor held the asset. Income from sales, as well as from lending and passive staking, is set to be classified as capital income and taxed under the Abgeltungsteuer rules.

What Will Change for Crypto Holders?

Currently in Germany, profits from selling crypto assets that an investor has held for more than 12 months are generally not taxed. During the first year, profits are taxed at the individual income tax rate.

In the draft bill, the government explains the shift in approach by the growing role of the crypto market. The authors argue that due to high liquidity, speculative use, and the absence of wear and tear, crypto assets are more similar in their characteristics to traditional financial investments than to ordinary economic goods.

The proposed rules would primarily apply to bitcoin and Ethereum, as well as other crypto assets used as a means of exchange. At the same time, NFTs, security tokens, and certain other crypto assets that provide — or are intended to provide — real value will remain under the current rules. An exception is also предусмотрений for certain types of stablecoins.

Existing Crypto Holdings Will Be Protected

A separate transitional provision applies to assets that investors purchased by the end of 2026.

The changes will apply only to crypto assets purchased or received after December 31, 2026. Assets acquired earlier will remain under the current tax regime.

As a result, holders of bitcoin and other crypto assets acquired before this date will still be able to rely on the tax exemption rule after one year of holding. This provision will also apply to income from traditional lending and passive staking received after December 31, 2026.

The draft bill предусматривает that the new rules will take effect on January 1, 2027. At the same time, trading platforms are granted an additional transition period. The first withholding of capital gains tax upon the sale of crypto assets is scheduled to begin on January 1, 2028.

Crypto providers will be required to withhold tax from clients’ income themselves. At the same time, determining profit may be complicated by the fact that investors buy and sell assets across different platforms.

In such cases, platforms will be able to use taxpayers’ information on the purchase price and the date of acquisition. If it is impossible to determine these details, the draft bill provides for an alternative mechanism with a fixed withholding of 50% of the proceeds from the sale of exchange crypto assets.

How much will the budget receive?

Germany’s Ministry of Finance expects the new rules to bring additional tax revenue to the budget in the triple-digit millions. In 2028, around €160 million in additional revenue is projected. By 2031, the figure is expected to rise to roughly €350 million per year.

The draft bill is currently at an early stage of interdepartmental coordination. Therefore, its provisions may still change as it moves through the subsequent stages of the legislative process.

As a reminder, at the end of June 2026, EU countries issued 244 MiCA licenses, with Germany accounting for a quarter of all permits.

Сообщение Media: Germany Will Change Crypto Asset Tax Rules Starting in 2027 появились сначала на INCRYPTED.