Germany moves to tax bitcoin like stocks as new draft bill targets tax-free gains
Germany is proposing a new tax bill that would treat bitcoin and ether gains like traditional stock investments, subjecting them to a 25% flat tax regardless of holding period. The law is expected to take effect in January 2027, with automated withholding requirements for crypto providers starting in 2028.
Why it matters
This represents a significant shift in European crypto regulation, moving toward standardizing digital asset taxation to increase government revenue.
A draft bill from the Federal Ministry of Finance, led by Vice Chancellor Lars Klingbeil, would make gains on crypto acquired after Dec. 31, 2026 taxable regardless of the holding period, according to a DTS report citing German newspaper Die Welt.
Crypto bought before that date would remain under the current rules. The proposal would also classify income from crypto lending and staking as capital income.
The change would bring bitcoin and ether ETH $ 2,512.03 under a tax system that treats gains more like returns from traditional investments. That’s Germany's flat withholding tax regime, or Abgeltungsteuer, taxing gains 25% plus a 5.5% solidarity surcharge on the tax, an effective 26.375%, before any church tax.
NFTs, some stablecoins, security tokens and some tokens tied to real-world assets would remain outside the new regime, according to the report.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in