German cabinet takes up draft ending one-year tax-free crypto holding rule

On October 14, 2026, the German cabinet takes up a draft that would end the one-year tax-free holding rule for crypto bought after December 31, 2026. The draft is not tied to specific coins and would apply to crypto assets in general.

What is happening

Under current German rules, holders pay no tax on crypto they have kept for at least a year. The draft before the cabinet would replace this exemption for coins bought from 2027 onward with a flat 25% tax, plus a small extra charge, as reported by BeInCrypto.

The cutoff is based on the purchase date. Crypto bought on or before December 31, 2026 would keep the existing one-year rule, while anything acquired after that date would fall under the new regime.

The cabinet meeting is one step in the process. According to CryptoTicker, the Bundestag's petitions committee was also set to debate the crypto holding period on October 12, two days before the cabinet session. The bill still needs approval from both houses of parliament, so the cabinet's handling of the draft does not make it law.

Why it matters

For German holders, the tax treatment of long-term holdings directly affects how gains are taxed when they sell. A move from a tax-free outcome after one year to a flat 25% rate would change the calculation for anyone planning to buy after the cutoff date. Because the old rule is preserved for coins bought by the end of 2026, the draft also creates a clear dividing line between holdings acquired before and after that date.

For traders and investors, the main uncertainty is whether the draft survives the legislative process unchanged. Parliamentary approval from both houses is still required, and the final rate, extra charge and cutoff could differ from the current proposal. Anyone affected may want to follow the outcome of the cabinet session and the later parliamentary stages, and consult a tax professional about their own situation.

Key details

• Date: October 14, 2026
• Project: German Federal Government
• Coins: None specified; applies to crypto assets in general
• Category: Regulatory Deadline
• Status: Confirmed
• Source: coingabbar.com, citing CryptoTicker and BeInCrypto