Germany's Crypto Tax Reform 2027: The End of the Tax-Free Holding Period – and What Investors Can Do Now
Germany's one-year tax exemption for crypto gains is set to end. A draft bill from the Federal Ministry of Finance is on the table. What is planned, which grandfathering applies, what is still open – and which international options investors with larger positions should consider.
- ✛Until the end of 2026, crypto gains remain tax-free after a twelve-month holding period (Sections 22, 23 EStG).
- ✛For Bitcoin and Ether acquired from 2027, a 25 % flat-rate tax is planned regardless of holding period.
- ✛Holdings bought before 2027 are set to be grandfathered – provided they are fully documented.
- ✛The draft is not yet law; content and timeline may still change.
- ✛DAC8 reporting by platforms already applies from reporting year 2026.
The current legal position: what applies until the end of 2026
Anyone in Germany who holds Bitcoin or Ether for more than twelve months can currently realise the gain entirely tax-free. The basis is Sections 22 and 23 of the Income Tax Act (EStG): crypto assets held privately count as «other assets» and fall under the one-year speculation period.
Selling within twelve months triggers the personal income tax rate – up to 42 % at the top rate plus solidarity surcharge. This remains unchanged for tax years 2025 and 2026.
What is planned from 2027
The draft reclassifies crypto assets: they would no longer count as private disposals but as income from capital assets – like shares and fund units. The new term is «exchange crypto assets», meaning mainly common cryptocurrencies such as Bitcoin and Ether.
| Item | Planned rule |
|---|---|
| Holding period | Abolished for holdings acquired after 31 Dec 2026 |
| Tax rate | 25 % flat-rate tax plus solidarity surcharge and church tax where applicable – effectively about 26.4–27.8 % |
| Lending and passive staking | Also treated as capital income |
| Withholding by platforms | Only from 1 January 2028; for 2027, declared in the KAP schedule |
| Saver's allowance | EUR 1,000 (EUR 2,000 for joint filers) also applies to crypto |
| Loss offsetting | Probably not against share gains |
Not covered: NFTs and e-money tokens
The term «exchange crypto asset» is deliberately narrow. E-money tokens and crypto assets not accepted as a means of exchange – above all NFTs – are not meant to fall under the new system.
Grandfathering for existing holdings
For many investors this is the key point: exchange crypto assets acquired before 1 January 2027 are meant to remain under Sections 22 and 23 EStG. Anyone who has met or will meet the one-year period can still realise these gains tax-free after 2027.
- ✛For later inflows from transactions involving existing holdings, grandfathering does not apply without restriction.
- ✛If the platform lacks information on the acquisition date, it is to assume acquisition after 31 Dec 2026 and withhold tax on 50 % of the sale proceeds.
Complete documentation of every transaction – acquisition date and cost – is essential already today.
What has not yet been decided
The draft is not yet law. The cabinet scheduled the reform on 6 July 2026 as part of the 2027 draft budget; committee deliberations are planned for September to November 2026, with adoption in December 2026 at the earliest.
The draft Income Tax Reform Act 2027 adopted by the cabinet on 2 September 2026 initially did not include crypto taxation. Tax rate, grandfathering, loss offsetting and timeline may therefore still change.
DAC8: reporting already applies
Regardless of taxation, transparency is already a reality: the Crypto Asset Tax Transparency Act implements the EU directive DAC8. Crypto service providers record tax-relevant transactions from calendar year 2026 and report them to the Federal Central Tax Office by 31 July 2027 at the latest. For users of regulated platforms, unreported transactions are a thing of the past.
What crypto investors should review now
- 1Complete your records: without proof of acquisition date and cost, a flat withholding on 50 % of proceeds looms.
- 2Check holdings with a running period: coins bought before the cut-off date are meant to remain tax-free after the period ends, even after 2027.
- 3Clarify your structure early: anyone planning substantial crypto wealth long-term should review adjustments before the law takes effect.
International alternatives – with clear limits
In practice, clients increasingly ask whether legally sound international alternatives exist. The answer is yes – but only with genuine substance and careful review.
Leaving Germany
Privately held crypto assets are generally not subject to exit taxation under Section 6 AStG, which applies to shareholdings in corporations. However, moving to a low-tax country can trigger extended limited tax liability under Section 2 AStG for up to ten years. An individual review before relocating is essential.
Georgia: territorial taxation
Georgia taxes on a territorial basis: Georgian tax residents pay, at best, no income tax on foreign-qualified crypto gains. Local sources, business activity and banking compliance must be reviewed separately; for very large exits, practical financial infrastructure is often as decisive as the tax rate. SWICOR supports remote account opening at TBC Bank and company formation in Georgia.
Companies abroad
- ✛Malta: EU location with an effective corporate tax of about 5 % via the refund system and a mature crypto framework.
- ✛USA: an LLC without US income and without US members may, under certain conditions, create no US tax liability.
- ✛UK Ltd. with a Swiss branch: a full Swiss presence with low capital requirements, flat fee from CHF 1,800, ready in 2–3 weeks.
What SWICOR offers
- ✛Analysis of your personal situation and optimisation options
- ✛Company formation in Georgia, Malta, the USA, the UK or Switzerland
- ✛Account opening for the new structure
- ✛Registered address and ongoing administration
- ✛Support with relocating your residence
SWICOR does not provide German tax law advice. The analysis of relocation and existing holdings should be coordinated with a specialised German tax adviser – we are happy to refer you.
Have your crypto structure reviewed – without obligation.
Tax optimisation →Conclusion
- ✛For new holdings from 2027, «hold and sell tax-free» is likely to end.
- ✛Existing holdings benefit from planned grandfathering – provided they are documented.
- ✛The law has not yet been passed; developments should be followed closely.
- ✛International structures are legal but require genuine substance and declaration.
Frequently asked questions
Does the new crypto tax apply to my existing Bitcoin?
According to the draft, no. Exchange crypto assets acquired before 1 January 2027 are meant to remain under the previous rules and stay tax-free after the one-year period. Complete documentation of the acquisition date is decisive.
When does the new taxation apply?
For crypto assets acquired from 1 January 2027. German providers only withhold tax from 2028; income for 2027 must be declared in the KAP schedule of the tax return.
What is the planned tax rate?
25 % flat-rate tax plus a 5.5 % solidarity surcharge on it and church tax where applicable – effectively about 26.4 % to 27.8 %.
Are NFTs affected?
According to the draft, no. NFTs and e-money tokens are not meant to count as exchange crypto assets.
What applies to staking and lending?
Income from passive staking and lending is to be taxed as income from capital assets at 25 %.
Does leaving Germany trigger exit tax on crypto?
Usually not, since Section 6 AStG concerns shareholdings in corporations. Extended limited tax liability under Section 2 AStG may apply, however – an individual review is necessary.
Has the law already been passed?
No. A draft bill exists and the parliamentary process is ongoing. Content and timeline may still change.
Position your crypto wealth correctly before 2027
We analyse your starting point and show which international structure fits your holdings and plans – discreetly and without obligation.
This article is a general analysis and does not replace individual tax or legal advice. Regulations change; the information reflects the status at the date of publication.