Germany plans 25% crypto tax, grandfathering existing holdings

Germany’s Federal Ministry of Finance has drafted a bill that would slap a 25% flat withholding tax on crypto gains, but only for assets purchased after December 31, 2026. Everything you already own? Still governed by the old rules. It’s the kind of policy move that rewards early adopters and gives everyone else a deadline. The draft law, unveiled in mid-August 2026, would take effect on January 1, 2027, with automatic tax withholding by service providers kicking in a year later on January 1, 2028. What the new tax regime actually looks like Under the proposal, crypto assets acquired after the cutoff date would be reclassified as capital income under §20 of Germany’s Income Tax Act (EStG). That subjects them to the standard 25% flat-rate withholding tax, plus Germany’s solidarity surcharge. The combined effective rate comes to roughly 26.375%. For context, that’s the same tax treatment Germany applies to stock dividends and bond interest. The bill also includes a few features designed to soften the blow. Losses on crypto can be offset against gains from shares and other securities. There’s a continued saver’s allowance of €1,000 for individuals. And for people whose marginal tax ra...