Germany Proposes Ending Tax-Free Bitcoin Sales After 2026

The German Finance Ministry has proposed ending tax-free treatment of cryptocurrency gains after a 12-month holding period. The new rules would apply to assets acquired or received after December 31, 2026. Bitcoin and other cryptocurrencies purchased on or before that date would continue under the existing framework.

Under the proposal, crypto service providers would be required to withhold tax at source, starting from January 1, 2028. This is intended to allow platforms time to put the required technical systems in place. The change aims to remove cryptocurrencies' special tax treatment relative to traditional capital investments.

The proposed rules would make gains from the sale of Bitcoin, Ether, and other exchange-traded cryptocurrencies taxable regardless of holding period. According to estimates from the Finance Ministry, the reform would generate additional tax revenue of around €160 million in 2028, rising to approximately €350 million by 2031.