German Tax Bill Changes Bitcoin Holding Period for New Investors
The German finance ministry's draft bill on crypto taxation has changed the game for Bitcoin investors. The bill, which is set to be adopted by the cabinet on October 14, 2026, introduces a new rule that affects how Bitcoin is taxed. The rule states that any Bitcoin acquired after December 31, 2026, will be subject to a flat-rate withholding tax, rather than the current one-year holding period.
This means that investors who buy Bitcoin in 2026 or later will not be eligible for the tax-free gains that come with holding Bitcoin for more than a year. Instead, they will be subject to a fixed rate of taxation, regardless of the holding period.
The bill also affects investors who use a savings plan to buy Bitcoin. A savings plan is a type of investment where a fixed amount of money is invested in Bitcoin at regular intervals, regardless of the price. The bill states that any Bitcoin acquired through a savings plan after December 31, 2026, will be subject to the flat-rate withholding tax.
Investors who have already bought Bitcoin through a savings plan before December 31, 2026, will be grandfathered in and will still be eligible for the one-year holding period. However, this means that investors who start a new savings plan in 2027 or later will not have the same tax benefits.
The bill also introduces a new rule that requires trading venues to pay over the tax directly, rather than the investor. This means that investors will no longer have to worry about paying taxes on their Bitcoin gains, as the tax will be paid directly by the trading venue.
Investors who are considering buying Bitcoin should take note of the changes introduced by the bill. The bill affects how Bitcoin is taxed, and investors should be aware of the tax implications of their investments.