Germany's crypto taxation bill is scheduled for October 14th (today), WiWo reports

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Germany's crypto taxation bill is scheduled for October 14th (today), WiWo reports

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  • The reform would abolish the current one-year holding period exemption and make crypto gains taxable from the first euro and replace income tax with a flat capital gains tax of 26.375%.

Context

Germany's one-year holding exemption has long been the distinguishing feature of its crypto tax regime and a stated reason for retail and longer-term holders to domicile activity there; removing it and substituting a flat capital gains rate would bring the treatment closer to that of listed securities, aligning crypto with the existing flat withholding framework rather than the progressive income scale. Shifts of this kind from tax preference toward harmonisation have historically followed the sequence of draft bill, committee scrutiny, coalition negotiation and amendment, with initial drafts frequently diluted before passage, so the first report is rarely the final text. The actors to note are the finance ministry as drafter and the coalition partners whose assent is required, with prior form suggesting fiscal-raising measures of this type attract lobbying from both industry and the opposition. The transmission channels are behavioural rather than macro: a potential incentive to realise gains under the current regime before any effective date, and over time a rotation of crypto custody and trading activity toward jurisdictions retaining favourable treatment, which is the mechanism that touches volumes rather than the euro. Worth watching are whether the proposal survives committee intact, the grandfathering or transition provisions, and any coordination with broader European crypto tax reporting initiatives. The date given is that carried by the headline itself.

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