Germany Moves to End 12-Month Tax-Free Bitcoin Rule From 2027

Germany’s Federal Ministry of Finance is reportedly preparing legislation to tax crypto gains at a flat 25%, plus solidarity surcharge, for assets acquired from January 1, 2027. The draft, reported by CoinDesk on September 9, would end the current tax-free treatment tied to holding crypto for more than 12 months for newly acquired assets, though the measure has not yet been enacted.

Draft sets a 25% tax for crypto acquired from 2027

Under the reported proposal, gains on crypto acquired after December 31, 2026 would be taxed regardless of how long the assets are held. The planned effective date is January 1, 2027.

That would mark a material change to Germany’s current treatment of privately held crypto, under which a sale can potentially be tax-free once the holding period exceeds 12 months. The reported draft would instead apply a flat-rate approach to post-cutoff acquisitions, alongside the solidarity surcharge.

The proposal remains at the draft stage. No enacted legislation is identified in the reporting, so the current framework has not yet been replaced.

Pre-2027 holdings would retain the 12-month exemption

Crypto acquired before January 1, 2027 would retain the existing treatment, including the possibility of a tax-free sale after a holding period exceeding 12 months, according to Decrypt.

From 2027, the reported proposal would apply a 25% levy regardless of the holding period. CoinDesk reported that later-acquired crypto would be treated under that proposed rule, leaving the 12-month advantage with earlier acquisitions.

Government had already signaled crypto tax legislation for 2027

The reported Finance Ministry draft follows earlier public signals from Berlin. On June 9, the Bundestag’s official information service said the government intended to tax Bitcoin and other crypto gains more heavily and remove the existing holding period.

Less than a month later, on July 6, the Federal Ministry of Finance said the government would introduce legislation changing the taxation of crypto-assets as part of its 2027 fiscal plans. The latest reporting provides the first stated rate and acquisition-date cutoff, but the legislative process is still unfinished.

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