Germany may end the crypto holding period: what it means for stocks

For tax purposes, Bitcoin and other crypto assets currently count as "other assets". Gains fall under private sales transactions in § 23 EStG. If you sell at a profit within one year of buying, you pay your personal income tax rate. If more than one year has passed, the gain is tax-free, however large. There is also an exemption limit: if your total gain from such sales stays under €1,000 in a year, it is tax-free. At €1,000 or more, the whole amount is taxable, not just the part above it.

On 30 September 2026 the Federal Ministry of Finance published a draft bill to reform the taxation of certain crypto assets held privately. The core idea: so-called exchange tokens such as Bitcoin and Ether would move into capital income, alongside interest, dividends and share gains. Gains would be taxable regardless of how long you hold, at the 25 % flat tax. Income from lending and passive staking would be covered too. From 2028, German crypto platforms would withhold the tax directly, much like a bank does for shares.

The draft only changes rules for certain crypto assets. Nothing changes for stocks and ETFs. Gains, dividends and distributions are still taxed at the 25 % flat tax plus solidarity surcharge and church tax if applicable (§ 32d EStG). The saver's allowance stays at €1,000 a year, or €2,000 for married couples filing jointly. Partial exemption stays at 30 % for equity funds and 15 % for mixed funds. Stocks have had no tax-free holding period since 2009. So the "new tax for investors" headlines are about crypto investors, not stock or ETF savers.

A ministry draft is the first step. The ministry coordinates it with other ministries, then the cabinet is meant to adopt it. According to press reports, that is planned for 14 October 2026. The Bundestag then debates it. According to the draft, the Bundesrat must also approve. The plan is politically disputed: finance politicians from CDU and CSU spoke out against it at the end of September 2026. Fritz Güntzler, finance spokesman of the CDU/CSU group, said a tougher crypto tax was not part of the coalition agreement. A petition to keep the holding period has gathered more than 44,000 signatures.

First: for tax, crypto and stocks are two separate worlds today. The draft would move new crypto gains into the world of capital income. Second: stocks, ETFs and new coins would then share one saver's allowance of €1,000. The separate €1,000 crypto exemption limit would no longer apply to new coins. Third: if you sell coins without records of purchase date and price, the draft treats you less favourably. The platform would then assume 50 % of the sale proceeds as gain. That shows how much clean records matter. What you make of this is your decision. This page is not investment or tax advice.