In the biggest Crypto news today for German investors, the Federal Ministry of Finance has drafted a bill that would end the country's tax-free crypto rule and bring in a 25% flat tax on gains.
The draft was first reported by German outlet Welt and reviewed by Handelsblatt in mid-August 2026, and later confirmed in a German finance ministry report.
This Germany Crypto News update lands as the government works to close gaps in its 2027 federal budget. As of September 10, 2026, 10:05 AM IST, Bitcoin was trading near $78,377
Under the plan from Vice Chancellor and Finance Minister Lars Klingbeil, profits from crypto sales would be taxed at a flat 25% rate, regardless of how long the investor held the asset.
Add Germany's solidarity surcharge, and the effective rate climbs to roughly 26.4%, before any church tax. This move is part of the wider Germany Crypto Tax 2028 rollout tied to automatic withholding by exchanges.
Applies only to crypto bought on or after January 1, 2027.
Coins bought before that date keep the current one-year tax-free holding rule.
Automatic withholding by exchanges and brokers starts in 2028.
A €1,000 saver's allowance would still apply.
Crypto losses can be offset against gains from other assets, including stocks.
Year | Projected Revenue |
2028 | €160 million |
2031 | €350 million annually |
According to this Germany Crypto News report, the ministry argues crypto assets "increasingly represent a form of private capital investment" and should not stay favored over other income types.
This marks the Germany crypto tax free rule end for any coins bought from 2027 onward, while the Germany 25% flat tax on Bitcoin and other tokens leaves older holdings untouched.
No. Community trackers, including a widely shared X post from @BullTheoryio, flagged this as the fourth push in roughly 18 months to scrap the one-year rule, after three earlier proposals from the Left Party, the Greens, and coalition budget talks stalled.
This is (BullTheoryio) also covered this news in the tweet, noting the rule sits inside the budget bill this time, which analysts say is harder to strip out than a standalone motion. 
No. As this Germany Crypto News update explains, the draft still needs a hearing with industry groups and federal states, a first Bundestag reading expected after September 2026, and committee review before the Bundesrat weighs in.
The CDU/CSU coalition partner has previously resisted tax hikes, so passage isn't guaranteed.
Market analysts tracking this Crypto news note the proposal echoes Austria's 2022 shift to a flat crypto tax, which brought in far less revenue than officials expected.
Analysts suggest the grandfathering clause could soften near-term pressure on existing holders, though it may discourage fresh purchases once the rule applies.
Some analysts believe the change could push capital toward friendlier jurisdictions if it clears parliament, though the outcome stays uncertain given internal coalition disagreement.
Disclaimer: This article is for informational purposes only and is not financial, tax, or investment advice. Crypto tax rules may change before final passage. Readers should consult a licensed German tax advisor before acting on this proposal.
