Germany's Crypto Tax Bill Set for Cabinet Vote on October 14

The German government is moving forward with a new crypto tax bill, which will affect the taxation of cryptocurrency investments. The bill, which was sent to industry associations on September 30, 2026, is set to be decided by the cabinet on October 14, 2026. The draft bill ends the one-year holding period for crypto assets, but grandfathering provisions will apply to existing holdings acquired by December 31, 2026.

Under the new rules, gains from the sale of cryptocurrencies will be taxed as capital income, rather than private disposals. This means that investors will be subject to a 25% capital gains tax, plus the solidarity surcharge. The draft bill also extends the taxation to staking and lending, which will be treated as capital income.

The deadline for comments on the draft bill ends on October 6, 2026. The reform is expected to bring in around 350 million euros in additional annual revenue. However, critics argue that the costs for citizens and businesses are still unclear, and that the new rules will be more complex and burdensome.