Germany proposes replacing crypto tax-free holding period with withholding tax from 2027

  • Germany’s finance ministry proposes replacing the crypto holding-period exemption with withholding tax.
  • Bitcoin acquired after December 31, 2026, would face the proposed new treatment.
  • SHIB bought before the deadline retains the one-year tax-free holding treatment.

Germany’s finance ministry has proposed ending the one-year tax-free holding period for Bitcoin acquired after December 31, 2026, replacing it with a flat-rate withholding tax. The draft bill would classify crypto gains as investment income. SHIB purchased before the deadline would retain the one-year tax-free treatment described in the proposal.

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