Germany Plans 2027 Crypto Tax Reform, Holding Rule in Focus

TLDR

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Germany plans to change its crypto tax framework from 2027 to raise €2 billion in revenue.
Finance Minister Lars Klingbeil said the government wants to tax cryptocurrencies differently.
Germany currently exempts private crypto gains from tax after a one-year holding period.
The finance ministry confirmed that the one-year rule also applies to staking and lending activities.
Industry groups believe the government may target the holding exemption to generate revenue.

Germany is preparing to revise its cryptocurrency tax framework from 2027. The government aims to raise €2 billion, or about $2.3 billion, through new crypto tax measures. Officials also plan tighter controls to address financial crime and improve reporting compliance.

Germany Considers Crypto Tax Reform Targeting Holding Exemption

Finance Minister Lars Klingbeil announced the plan during an April 29 press conference on the 2027 federal budget. He said the government wants to “tax cryptocurrencies differently” and secure extra revenue. However, he did not specify which existing rules would change.

Under current law, Germany taxes private crypto gains if investors sell within one year. After one year, authorities generally exempt gains from tax under the “Haltefrist” rule. Therefore, long-term holders have benefited from one of Europe’s more favorable regimes.

The finance ministry confirmed in 2022 and again in 2025 that the one-year rule also covers staking and lending. Earlier proposals had suggested extending the holding period to 10 years. However, the ministry dropped that plan and maintained the 12-month framework.

Industry groups believe the exemption could face revision under the new proposal. The German Bitcoin Association has said the holding period likely presents the clearest revenue source. Meanwhile, officials have not released draft legislation.

Crypto tax accountant Robin Thatcher told Cointelegraph that removing the 12-month exemption would weaken Germany’s position as a crypto hub. He said other countries “should be copying this policy rather than Germany changing it.” He added that the rule has supported retail participation.

Germany Aligns Oversight with EU Reporting Standards

Germany has already strengthened oversight through the EU’s DAC8 regime. Since January, the Crypto Asset Tax Transparency Act has required crypto asset service providers to report customer transactions. Authorities now share that data with the Federal Central Tax Office and other EU bodies.

This reporting framework reduces opportunities for undeclared crypto trading. It also increases transparency across member states. As a result, tax authorities can track cross-border digital asset activity more effectively.

Austria removed its own tax-free holding period in 2022. The country now taxes crypto gains at a flat 27.5% capital income rate, regardless of holding duration. That shift placed Austria closer to traditional investment tax treatment.

Thatcher said Germany could move “broadly in line with Austria” under a similar model. He also noted that the United Kingdom applies a top capital gains tax rate of 24%. He argued that Germany’s current structural edge would disappear if it removed the exemption.

Bitpanda co-founder Eric Demuth criticized Austria’s decision in a March 12 post on X. He called it “an extremely stupid decision” and said it added bureaucracy with little fiscal benefit. A Bitpanda spokesperson told Cointelegraph that reforms should not become “a mere revenue exercise.”

Erald Ghoos, chief executive of OKX Europe, said the plan would affect adoption and competitiveness. He stated that Austria’s approach created compliance burdens for limited revenue gain. Germany has not yet published detailed legislative proposals on the 2027 crypto tax overhaul.

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