Germany Weighs 2027 Crypto Tax Overhaul as One-Year Holding Rule Comes Under Threat

Germany's current crypto tax regime includes a holding-period rule known as the Haltefrist. Capital gains are generally tax-free when individuals sell crypto assets after holding them for more than one year. The benefit has long encouraged investors to adopt buy-and-hold strategies, and its removal would directly affect investment costs, trading decisions and tax planning.

Germany's federal government is considering an overhaul of cryptocurrency taxation in 2027 that could abolish the current exemption for assets held longer than one year. The government estimates the new regime could add about €2 billion in federal budget revenue. The reform would also be accompanied by tighter oversight of financial crime prevention, transaction reporting and tax compliance, though the specific tax rates and implementation date have yet to be announced.