Draft Bill: Tax reform for cryptocurrency assets

A draft bill for tax reform introduces the new category of “exchange-traded cryptocurrencies,” which includes, in particular, Bitcoin and Ether. Starting 1 January 2027, gains and current income from newly acquired exchange-traded cryptocurrencies will be taxed as capital gains—regardless of the holding period. The tax rate is 25% plus the solidarity surcharge and, if applicable, church tax. In addition, starting in 2028, a capital gains tax withholding by domestic crypto service providers is set to take effect. Existing holdings (acquired before 31 December 2026) will remain under the current regime: capital gains are tax-free after a one-year holding period. Now more than ever, investors should ensure their transaction records are well-organized. In particular, it may be worthwhile to use separate wallets or accounts to preserve the grandfathering provisions.