Germany’s finance ministry, led by Klingbeil, has proposed a new tax treatment for Bitcoin purchased after Dec. 31, 2026. Under the proposal, those holdings would face a flat 25% capital gains tax, or 26.375% after adding the solidarity surcharge. The plan would also shift tax collection to trading platforms starting in 2028, requiring them to withhold and remit the tax directly. Another key detail concerns cost-basis records: if a holder transfers Bitcoin to another platform and cannot provide proof of acquisition cost, the 25% rate could be applied to the full sale proceeds rather than only the gain. Bitcoin bought before the cutoff would keep the current exemption. At present, individuals in Germany do not pay tax on Bitcoin sales if they have held the asset for at least 12 months.
Germany’s finance ministry, led by Klingbeil, has proposed applying a flat 25% capital gains tax to Bitcoin purchased after Dec. 31, 2026. After the solidarity surcharge is added, the effective tax rate would be 26.375%.
Under the proposal, trading platforms would begin withholding and remitting the tax from 2028. If Bitcoin is transferred to another platform and the holder cannot provide proof of cost basis, the 25% rate could be applied to the full sale amount rather than only the profit.
Bitcoin bought before the cutoff date would keep the current one-year tax exemption. Germany currently does not tax individual Bitcoin sales if the asset has been held for at least 12 months.
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