Germany’s Crypto Tax-Free Rule Is Coming to an End

BitcoinWorld Germany’s Crypto Tax-Free Rule Is Coming to an End Key Takeaways Germany’s Finance Ministry has circulated a draft bill that would scrap the one-year tax-free holding rule and tax crypto gains as capital income from 2028. The headline says 25%.

The real number is 26.375% once the solidarity surcharge is added – closer to 28% with church tax. The draft grandfathers anything bought on or before December 31, 2026. Buy before New Year’s Eve and the old rules still apply.

Expected revenue: €160 million in 2028, rising to about €350 million by 2031. Against a federal budget north of €555 billion.   For years, Germany had one line in its tax code that quietly made it one of the best places in the developed world to hold Bitcoin.

Section 23 of the Income Tax Act treats crypto as a private asset, not a security. Hold it for more than twelve months, sell it, pay nothing. No cap, no tapering, no conditions. That line is now on the chopping block.