Germany has been one of the friendliest places in Europe to hold crypto long term: keep a coin for more than a year and the gain is tax-free. A draft from the Federal Finance Ministry would end that for new purchases. Crypto gains would move into the standard 25% flat tax on capital income, for coins acquired after January 1, 2027, with the new regime taking effect in 2028.
Nothing is law yet. But the draft changes what matters for German holders: not only how long you hold, but when you bought — and, because swaps count, what you did with the coin in between.
Under the draft, your acquisition date matters more than your patience.
Key facts
- On September 9, 2026, Die Welt reported a German Finance Ministry draft that would tax crypto gains at Germany’s standard 25% flat rate on capital income (Abgeltungsteuer).
- The draft would apply to crypto acquired after January 1, 2027, with the new tax taking effect in 2028; coins bought before the cutoff may keep the old treatment.
- Today, German crypto gains are fully tax-free after a 12-month holding period; shorter holds are taxed as income at up to 45%.
- According to CoinCentral, the €1,000 allowance stays, and crypto losses could be offset against gains and losses on stocks and securities.
- The draft, backed by Finance Minister Lars Klingbeil, still needs cabinet and parliamentary approval.
What did Germany propose on September 9?
Germany’s Finance Ministry drafted a rule that would end the one-year tax-free holding period for crypto bought after January 1, 2027 and tax those gains at the flat 25% rate that already applies to stocks and other capital income, starting in 2028. Die Welt broke the story on September 9, 2026, and Cointelegraph reported it the same day.
Finance Minister Lars Klingbeil had signaled plans in this direction back in April. The draft is the first concrete version: crypto would be folded into the Abgeltungsteuer system instead of being treated as a “private sale” with its own holding-period logic.
Current rule vs proposed rule
| Topic | Current rule | Draft rule (not yet law) |
|---|---|---|
| Held 12+ months | Gain fully tax-free | Taxed at 25% for coins acquired after Jan 1, 2027 |
| Held under 12 months | Taxed as income, up to 45% | 25% flat tax (Abgeltungsteuer) |
| Coins bought before Jan 1, 2027 | — | May keep the old treatment |
| €1,000 allowance | Applies | Stays, per CoinCentral |
| Offsetting against stocks | Not part of the stock regime | Crypto losses could offset stock and securities results, per CoinCentral |
| Start | In force | 2028, if approved |
For short-term traders in high income brackets, a flat 25% could actually be lower than today’s income-tax treatment. For long-term holders, it’s a clear loss: a gain that would have been tax-free after a year becomes taxable at 25%.
Who is affected, and when?
The key date is January 1, 2027. According to the draft as reported, coins acquired after that date fall under the 25% regime once it takes effect in 2028, while coins bought before the cutoff may keep today’s treatment, including the one-year tax-free rule. Until the law passes, that grandfathering is a stated intention, not a guarantee.
The estimated revenue is also still fuzzy. CoinCentral, citing Der Spiegel, puts the crypto measure at about €350 million; other reports describe roughly €160 million in 2028 rising to €350 million by 2031. Estimates vary between outlets, which is normal for a draft that hasn’t been through cabinet yet.
Does a crypto-to-crypto swap count as a sale in Germany?
Generally, yes. Under current German practice, swapping one crypto for another is typically treated as disposing of the first coin and acquiring the second. That means the new coin usually starts its own holding period on the swap date. If the draft becomes law, a swap after January 1, 2027 could therefore turn a grandfathered coin into one acquired under the new rules.
That is the practical trap. Someone holding BTC bought in 2024 might, in 2027, swap part of it into ETH or a stablecoin — and, under the usual treatment, the ETH would count as a fresh acquisition after the cutoff. The details depend on the final text and on how the tax authorities apply it, so treat this as a question to take to a tax adviser, not a conclusion.
Every swap is a tax event with a date on it. Log it like one.
What this means for swap users: keep records
Whatever the final rules look like, the defense is the same: a clean record of every swap — date and time, amounts sent and received, the rate, fees, and the transaction IDs on both chains. SwapZilla has no accounts, so you won’t get an annual statement from us; instead, each order shows its details, and you can look any swap up again by its order ID on the tracking page. Save that information when you swap. If you care about which rate ends up in your records, read fixed vs floating rate swaps; common questions about orders are in the FAQ. This is general information, not tax advice.
For context, the draft landed in a nervous market: on September 9, bitcoin traded around $78,400–78,800 and ether near $2,485, with oil around $100 as escalations in the Middle East weighed on risk assets, according to Yahoo Finance.
Final thoughts
Germany’s draft doesn’t tax anyone yet, and it still needs cabinet and parliament. But it resets the planning horizon for German holders: the January 1, 2027 acquisition cutoff, and the way swaps can create new acquisition dates, will matter more than the old one-year clock. Keep records now, keep them complete, and get professional advice before making moves around the cutoff.