Reform tracker: holding period & flat-rate withholding tax (as of 28 September 2026)

This tracker records how far the plans to abolish the tax-free holding period for crypto assets have got – dated, sourced, not tax advice. Last checked: 28 September 2026.

What is it about?

Today, gains on privately held bitcoin are only taxable if you sell within one year – and even then only if your private disposal gains for the year reach €1,000 in total.^[1] The details are in Bitcoin & tax in Germany.

Two proposals want to change this:

• Federal government – flat-rate withholding tax: in the 2027 draft budget, adopted by the cabinet on 6 July 2026, it announces that crypto assets will be taxed like shares, as investment income – regardless of how long you hold them.^[3] According to analyses by law firms, a ministerial draft bill (Referentenentwurf) from the Federal Ministry of Finance sets a 25% flat-rate withholding tax (Abgeltungsteuer) for this.^[6],[7]
• The Greens – personal tax rate: their bill in the Bundestag scraps the holding period for crypto assets acquired after 31 December 2025. Gains would then be taxed at your personal income tax rate, however many years you held them.^[2]

Timeline

1. 5 May 2026

   The Greens’ bill

   Bundestag document 21/5752: the holding period is to be abolished for crypto assets acquired after 31 December 2025; gains are taxed at the personal rate.^[2]

2. 6 July 2026

   Cabinet adopts the 2027 draft budget

   Abolishing the holding period becomes the government’s stated aim. That is not a law; it needs a separate legislative procedure.^[3]

3. 12 Aug / 2 Sep 2026

   Two tax bills without a crypto rule

   The cabinet adopts the Annual Tax Act 2026 and the Income Tax Reform Act 2027. Neither changes the holding period.^[4],[5],[6]

4. 8 September 2026

   Ministerial draft becomes known

   The draft has been under consultation within the government since mid-August. Its contents become public through press reports: a 25% flat-rate withholding tax on crypto assets acquired after 31 December 2026.^[6],[4]

5. 27 September 2026

   Opposition from the CDU/CSU

   According to a report in Bild, finance politicians of the conservative CDU/CSU reject new taxes, explicitly including one on Bitcoin. Almost all CDU state premiers also oppose new burdens.^[8]

6. 28 September 2026

   Status: not passed

   Existing law applies.^[4],[8]

What the ministerial draft bill proposes

The draft has not been officially published; what is known is a leaked version that, according to the report, is not yet finished.^[8] The left column is current law;^[1],[9] the right column comes from analyses by tax law firms and may still change.^[6],[7]

Point	Today	According to the draft
Classification	private disposal (§ 23 EStG)	investment income (§ 20 EStG)
Holding period	tax-free after more than one year	none – gains are taxable however long you hold
Tax rate	personal rate, only if sold within one year	25% plus solidarity surcharge, 26.375% in total, plus church tax where applicable
Tax-free amount	exemption limit: tax-free as long as the year’s gains stay below €1,000	saver’s allowance: €1,000 is deducted
Losses	can only be offset against private disposal gains	can be offset against other investment income
Tax withholding	none – you declare it yourself	German providers withhold the tax from 2028
Purchases affected	–	after 31 December 2026; older holdings keep the one-year period
Missing purchase records	the tax office estimates	for withholding, a flat 50% of the sale proceeds counts as gain

The 25% rate already applies today to investment income such as interest and dividends.^[10] The saver’s allowance covers all investment income together: if you already use it up with interest or dividends, there would be nothing left for Bitcoin gains.^[11]

Three worked examples

Purely hypothetical and simplified: no church tax, the draft becomes law as it stands, and the saver’s allowance has not been used. Amounts are in euros because the tax office calculates in euros.^[1],[11],[6]

• Held long term: bought for €5,000 in March 2027, sold for €12,000 in March 2032, gain €7,000. Today: tax-free. Under the draft: 26.375% on €6,000 (€7,000 minus the €1,000 allowance) = €1,582.50.
• Sold short term: bought in March 2027, sold in September 2027, gain €3,000. Today: fully taxable, €1,050 at an assumed personal tax rate of 35%. Under the draft: 26.375% on €2,000 = €527.50.
• Small gain: a €1,200 gain from a sale within one year, no other such gains. Today: the exemption limit is exceeded, so all of it is taxable – €360 at an assumed 30%. Under the draft: 26.375% on €200 = €52.75.

So long-term holding would become more expensive, and short-term selling at a high personal tax rate cheaper.

How things could proceed

The sources we analysed give no date for a cabinet decision.^[6],[7] This is how the procedure works:

1. Ministerial draft bill

   The ministry coordinates the draft within the government and usually consults the federal states and interest groups. A lot can still change here.^[7]

2. Cabinet and Bundesrat

   If the cabinet adopts the draft, it goes as a government bill first to the Bundesrat – the chamber of the federal states – which can comment within six weeks.^[12]

3. Bundestag

   The Bundestag debates the bill and votes on it.^[13]

4. Bundesrat consent

   Income tax revenue also goes to the states and municipalities, so the Bundesrat has to consent.^[14]

5. Promulgation

   The law is promulgated in the Federal Law Gazette (Bundesgesetzblatt) and itself sets the date from which it applies.^[15] Until then, existing law applies.

Politically, the plan is disputed: according to a law firm’s analysis, the Social Democrats (SPD) confirm that talks are under way;^[6] according to the Bild report, CDU/CSU finance politicians oppose abolishing the holding period. Because the Bundesrat has to consent, it also matters that almost all CDU state premiers oppose new burdens.^[8] Whether a law will come, and whether the 31 December 2026 cut-off date will stay, is open.

Arguments in the debate

These points reflect what is being put forward. They are not our assessment.

Sources: equal treatment per the draft budget,^[3] the German exception per the Greens’ bill,^[2] additional revenue and the flat rate per a law firm’s analysis,^[6] the effort with savings plansTermSavings plan (Bitcoin savings plan)Automatically buying bitcoin at fixed intervals with a fixed amount, for example $50 a month.On the learning path: Stage 4 · Step 4 – Setting up a savings plan →In the glossary →AdLicensed providers with a paid linkProviders from our comparison21bitcoinBitcoin app · MiCA (FMA, Austria)No paid link for your country · Profile →RelaiBitcoin app · MiCA (AMF, France)No paid link for your country · Profile →BISONExchange · MiCA (BaFin, Germany)No paid link for your country · Profile →All 11 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× per a tax adviser’s blog.^[4]

What this means for you

• Nothing changes today. Current law applies until a new law is promulgated. The holding period calculator shows when your purchases become tax-free.
• A possible cut-off date is not a buy signal. It only appears in a draft, and price swings can easily outweigh a tax advantage. Decide according to your goal and your capacity to bear risk: Goal first, strategy second.
• Document your purchases. Without records, the draft provides for an unfavourable flat rate.^[6] If you can prove your purchase date and price, you are prepared for any rule: Record-keeping & tax tools.
• Savings plans and separate wallets. If the draft became law, every savings-plan purchase after the cut-off date would be a separate purchase under the new system. Tax advisers therefore recommend keeping old and new holdings in separate wallets – an organisational aid, not an obligation.^[4],[7]

Quick check

What’s next?