Crypto taxation from 2027 is so far only a draft: the Federal Ministry of Finance has presented a ministerial draft under which gains from newly acquired crypto assets would be taxed at 25 percent, with no holding period. This guide works through what that would mean for a sale, and separates current law from the draft.
In short: Under the Federal Ministry of Finance draft of 30 September 2026, gains from crypto assets acquired from 1 January 2027 would be taxed with no holding period at 25 percent plus solidarity surcharge, together about 26.375 percent. It is not enacted; the cabinet has not yet adopted the draft. Last updated: November 2026.
Key points
- Today: gains from crypto assets are tax-free after more than one year of holding (section 23 EStG). Within the period, a threshold of EUR 1,000 per calendar year applies.
- The ministerial draft would abolish the holding period for crypto assets acquired from 1 January 2027. According to reports, holdings up to 31 December 2026 keep the one-year rule.
- The tax rate would be 25 percent, about 26.375 percent with the solidarity surcharge. Tax withholding by domestic service providers would apply from 2028.
- A ministerial draft is not a law. The cabinet has not adopted it, and no new date is known.
- For students with low income, a flat 25 percent can be worse than the personal tax rate. Whether a more-favourable-rate test is provided is only settled by the final version.
What applies to crypto gains today?
Under current law, gains from selling crypto assets are private sales transactions under section 23 EStG. The holding period is not more than one year. If you hold coins for more than twelve months, you sell them tax-free. Within the period, the gain is taxed at your personal income tax rate. Gains up to EUR 1,000 per calendar year stay tax-free, but this is a threshold (Freigrenze): if it is exceeded, the entire gain is taxable.
These rules continue unchanged unless the legislature decides otherwise. More on the state of the plans is in our guide What changes in 2027 for crypto and staking? (in German).
What does the draft provide and how certain is it?
| Item | Content according to reports | Status |
|---|---|---|
| Holding period | Abolished for crypto assets acquired from 1 Jan 2027 | Ministerial draft, not enacted |
| Tax rate | 25 percent plus solidarity surcharge, together about 26.375 percent | Ministerial draft, not enacted |
| Holdings up to 31 Dec 2026 | One-year rule remains | Ministerial draft, not enacted |
| Tax withholding by providers | From 1 Jan 2028 by domestic providers | Ministerial draft, not enacted |
| Cabinet | Decision expected for 14 October 2026, postponed | No new date known |
The details of the draft rest on a Bundestag report (session of 12 October 2026), the statement by the association Bitkom and reports by trade media and advisory firms (as of 27 October 2026). According to the Bundestag report, the draft classifies crypto gains under section 20 EStG and generally provides for 25 percent; it was in inter-ministerial coordination. They may change during the procedure. Check the current status before making a decision.
The 25 percent rate corresponds to the separate tax rate for investment income under section 32d (1) EStG. There, for church tax payers, the tax is reduced further by 25 percent of the church tax on the investment income.
Worked example: what would a sale after 18 months cost?
Assumption: You buy crypto assets on 15 January 2027 for EUR 4,000 and sell them on 20 July 2028 for EUR 9,000. The gain is EUR 5,000. Under current law the sale would be tax-free because you held for more than a year. Under the draft, the holding-period rule no longer applies to this purchase.
| Step | Amount |
|---|---|
| Sale proceeds | EUR 9,000 |
| Acquisition cost | EUR 4,000 |
| Gain | EUR 5,000 |
| Tax at 25 percent | EUR 1,250 |
| Tax at about 26.375 percent (with solidarity surcharge) | EUR 1,318.75 |
| Gain remaining after tax | EUR 3,681.25 |
The calculation is simplified. It ignores church tax, possible allowances and fees. Whether the EUR 1,000 savings allowance would apply to crypto gains depends on how the legislature finally classifies them. No wage tax in euros is calculated here.
Worked example: old holdings and new purchases compared
In everyday terms, the purchase date matters most. The overview below compares four cases. It shows why you should document purchase dates.
| Case | Today (section 23 EStG) | Under the draft |
|---|---|---|
| Bought 2026, sold after more than a year | tax-free | tax-free, one-year rule stays for old holdings |
| Bought 2026, sold within a year | personal tax rate, EUR 1,000 threshold | as today, according to reports |
| Bought from 1 Jan 2027, sold after more than a year | tax-free | 25 percent plus solidarity surcharge |
| Bought from 1 Jan 2027, sold within a year | personal tax rate, EUR 1,000 threshold | 25 percent plus solidarity surcharge |
What does 25 percent mean for students with low income?
Today, many students pay less than 25 percent on short-term gains, because their personal tax rate is low and the basic allowance covers income. A flat 25 percent would cost more than the personal rate in such cases.
For investment income, section 32d (6) EStG provides on application a more-favourable-rate test: the tax office subjects the income to the progressive scale if that leads to lower tax. The application matters when your personal rate is below 25 percent. Whether such a test would apply to crypto assets only follows from the final version of the law. For the draft, this is not documented in the reports.
Frequently asked questions
Does the 25 percent rate apply from January 2027?
That is not certain. The draft names 1 January 2027 as the cut-off for newly acquired crypto assets. Because the cabinet has not adopted the draft, it is not settled whether and when the law takes effect.
Do I have to sell my coins before New Year?
It depends on your situation. According to reports, holdings up to 31 December 2026 keep the one-year rule, so a sale before the cut-off is not needed to keep the tax exemption after a year. What the final law says is what counts.
What if I sell at a loss?
How losses from crypto assets would be offset after a reform is not documented in the draft according to the reports. Today, the rules for private sales transactions under section 23 EStG apply.
How do I prove when I bought?
Through the transaction history of your exchange or wallet. Export it regularly as a file, because the purchase date can be decisive for classification as an old holding.
Where do I report crypto gains today?
Under current law they count as private sales transactions. How to fill in the tax return is shown in our guide Crypto in the tax return: filling in Anlage SO.
What to do now
- Export the transaction history of all exchanges and wallets and note the purchase date and acquisition cost per coin.
- Separate holdings up to 31 December 2026 from later purchases.
- Follow whether the cabinet adopts the draft and whether the rate or cut-off changes.
- Before a sale, check which rule applies to each purchase and work through the examples above.
- For larger amounts or unclear classification, clarify the taxation with the tax office or a tax adviser.
Related guides
- What changes in 2027 for crypto and staking? (in German)
- Crypto in the tax return: Anlage SO
- What changes in 2027 for taxes?
- Taxes for Students: When You Pay and When You Do Not
If you want to look at investing and insurance cover together, a personal consultation with Academycon is available. The tax classification of your crypto transactions is a matter for the tax office or a tax adviser.
Sources: German Bundestag, hib 807/2026 (in German) (12 October 2026), Bitkom, statement on the ministerial draft (in German) (October 2026), Section 23 EStG (in German) (as of November 2026), Section 32d EStG (in German) (as of November 2026), reports on the ministerial draft: cash-online, 27 October 2026 (in German) and Ecovis, crypto taxation from 2027 (in German).
Last updated: November 2026. This guide is general information, not individual advice.
