Germany Bans Crypto Assets from State-Subsidized Retirement Products

The German government has announced that Bitcoin and other cryptocurrency assets will not be permitted in state-subsidized retirement products, including the new retirement savings account launching on January 1, 2027.

This means that individuals who want to use crypto assets for their own retirement will have to do so through private assets, which come with no tax relief or provider liability.

The current tax advantage of holding cryptocurrency assets for more than a year is now under review, and a draft bill from the German Federal Ministry of Finance proposes taxing gains at a flat 25 percent rate, regardless of holding period. This new rule would apply to all crypto assets acquired after December 31, 2026.

The retirement savings account will only allow investments in funds, ETFs, bonds issued by EU states, and long-term European investment funds, excluding individual shares, certificates, leveraged products, warrants, and cryptocurrency assets like Bitcoin.