What should a good tax adviser point out on the abolition of the holding period?
The holding period applies unchanged; the reform exists only as a reported draft. What a good adviser should raise on this, with a checklist and a list of questions. Background: The crypto holding period and the draft bill.
- Today: after more than twelve months, gains on disposal are tax-free under section 23 EStG.
- Under the draft bill, newly acquired crypto assets are to be taxed at a 25% flat tax from 2027, regardless of holding time. For existing holdings, according to the explanatory memorandum, sections 22 and 23 EStG continue to apply.
- Procedure: association hearing until 6 October 2026, cabinet on 14 October 2026. The draft is not yet law.
- In our reading, the draft contains no exit tax on crypto assets.
What your adviser should raise on their own
What applies today
Crypto assets are other assets within the meaning of section 23(1) sentence 1 no. 2 EStG. If no more than one year lies between acquisition and disposal, the gain is taxable; after that it is tax-free.
Swaps and wallet moves
Every swap is a disposal and an acquisition; a new period starts for the coin received. Moving between your own wallets does not reset the period. The tax administration expects the view per wallet.
Staking and lending
The tax administration does not apply the extension to ten years to currency and payment tokens, but only as a matter of equity (margin no. 63 of the ministry circular), not by law.
What the draft provides
Newly acquired exchange crypto assets are to be taxed as capital income at 25% from 1 January 2027, with automatic tax withholding by crypto service providers from 1 January 2028. If proof of acquisition cost is missing, the draft assumes withholding on 50% of the proceeds. The draft is not officially published and not law.
Existing holdings and proof
If you have to separate old and new holdings, you need reliable acquisition data per wallet. A clean reference-date balance saves reconstruction later; there is no legal duty to take a snapshot.
Exemption limit and losses
The EUR 1,000 exemption limit for private disposals and loss offsetting under section 23(3) and section 10d EStG apply today. A loss must actually be realised by year-end for this.
No sales for the reform alone
There is no legal duty to sell or reshuffle just because of year-end. Decisions should be worked out with your numbers.
Leaving Germany and the holding period
Destination countries have their own periods or none. The German one-year period and the period in the destination country have to be checked separately; see the comparison of destination countries.
Checklist for the advisory meeting
List of questions
Questions you can ask. Good answers are specific and name their basis.
- Which of my positions are tax-free if I sell today?
- What changes for existing holdings under the draft, and what is only reported?
- How do we cleanly separate old and new holdings?
- Which proof of acquisition cost am I missing?
- What does withholding on 50% of the proceeds mean for me?
- Is it worthwhile to sell or reshuffle before year-end, and what speaks against it?
- How do staking and lending income affect my planning?
- What applies if I move away?
- How do we proceed if the draft is changed?
- How long is my data available at the platforms?
Warning signs
- You are advised to sell without your numbers being known.
- The draft is presented as adopted.
- Nothing is said about existing holdings and proof.
- There is no statement on the per-wallet view.
Frequently asked questions
Does the holding period still apply?
What is to change under the draft bill?
Does the draft provide for an exit tax?
Legal position: position 12 October 2026. Sources: section 23 EStG, section 10d EStG, ministry circular of 6 March 2025; on the draft see the linked article. The draft bill is not officially published; statements about it rest on reports and our reading. The figures are abridged and are not advice on an individual case. Where this English text and the German text differ, the German text prevails.