Anyone who has held Bitcoin, Ethereum, or other cryptocurrencies for longer than twelve months has historically benefited from a significant tax advantage in Germany: capital gains from their sale are completely tax-free. This regulation, anchored in Section 23 of the German Income Tax Act (EStG) as a private slaes transaction for “other assets,” is now under considerable political pressure. Several legislative initiatives and political proposals from the Bundestag indicate that the taxation of crypto assets could change fundamentally. Although nothing has been officially decided yet, the direction of travel seems clear.
Crypto taxation plans by SPD, die Grünen, and the CDU/CSU
The current debate was kicked off by Federal Finance Minister Lars Klingbeil (SPD), who announced at the Federal Press Conference at the end of April 2026: “We want to tax cryptocurrencies differently.” The statement was made in the context of the key budgetary parameters for 2027 and was unmistakable. However, Klingbeil left open exactly what the new regulation would look like. He did make one thing clear, though: combined with measures to combat tax evasion, the new crypto taxation is expected to generate around two billion euros in additional revenue for the state coffers.
Meanwhile, Bündnis 90/Die Grünen introduced a concrete draft bill. Their draft (BT-Drs. 21/5752, dated May 5, 2026) proposes eliminating the holding period for crypto assets under Section 23 EStG “to close a loophole” and taxing crypto gains at the personal income tax rate, which currently tops out at 45 percent. The cutoff date for grandfathering rules is set for December 31, 2025, meaning that coins acquired before this date would be exempt from the new regulation. The party estimates additional revenues of at least five billion euros.
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On the other hand, according to press reports, the CDU/CSU sees no reason to alter the existing legal framework. They point out that the holding period rule is not a specific crypto-only regulation, but rather applies equally to gold, precious metals, and foreign currencies. Singling out cryptocurrencies would disrupt this systemic logic.
What is already in effect: DAC-8 and reporting obligations
Regardless of the outcome of the holding period debate, lawmakers have already set the initial course. With the implementation of the EU Directive DAC-8, crypto service providers are required to automatically transmit user data and transaction information to the Federal Central Tax Office starting January 1, 2026, reporting for the first time for the 2026 calendar year.
Tips for crypto investors: document transactions and review portfolios
Even though a concrete draft bill from the federal government is still pending, investors and entrepreneurs should not merely observe current developments. Instead, they should conduct a structured review of their current positions now. Particularly for those with larger holdings or more complex transaction histories, taking early action can help avoid future tax and documentation disadvantages.
- First and foremost, meticulous preparation of past transactions deserves special attention. Anyone who has not fully and transparently documented their purchases, sales, transfers, and wallet balances is creating significant tax risks.
- It is equally important to maintain a clear separation between older and more recent holdings. Should lawmakers ultimately include a transitional provision or a grandfathering clause, everything will depend on which acquisitions (including their exact date of purchase) can be clearly proven.
- For larger crypto positions, an individual tax review is highly recommended. Depending on the future legislation, it can make a substantial difference whether asset positions are held under the current legal framework or sold at a specific point in time at a gain or loss. Particularly in the case of high balances or complex transaction histories, early advisory support can be crucial to limit tax risks and protect existing strategic options.
WINHELLER provides comprehensive advice on cryptocurrencies
We will be pleased to guide you through this phase of transition with a thorough analysis of your situation and concrete recommendations tailored to your personal goals. Our team of experts stands by your side with years of experience and a keen eye for detail.
