Germany to Tax Crypto Profits Regardless of Holding Period Starting 2027
The German government has drafted a bill that would change the way profits from selling crypto assets are taxed. Starting in 2027, profits from bitcoin and Ethereum sales will be taxed regardless of how long an investor held the asset.
This is a departure from current rules, which exempt profits from selling these assets after one year of holding. The new rules will apply to crypto assets purchased or received after December 31, 2026.
Existing holdings acquired before this date will remain under the current tax regime. However, investors who purchase or receive crypto assets after this date will be subject to taxation on profits from selling these assets.
The German government estimates that the new rules will bring in an additional €160 million in revenue in 2028 and around €350 million per year by 2031.