Crypto Holding Period Germany: Reform Leaves It Intact

The one-year holding period for private crypto gains still applies. On September 2, 2026 the German federal cabinet adopted the draft of an Income Tax Reform Act 2027, and it says nothing about the taxation of crypto assets. Anyone who holds a position for more than a year and then sells remains tax-free under the law as it stands.

That is the most useful piece of information this week for anyone who has been wondering since the summer whether to bring sales forward to get ahead of an announced reform. The announcement exists. The law that would implement it still does not.

What the Federal Cabinet Decided on September 2, 2026

The Federal Ministry of Finance published the cabinet decision the same day. The draft is called the Income Tax Reform Act 2027 and targets relief for low and middle incomes and for families with children. The ministry puts the total relief volume at around ten billion euros; the measures take full effect from 2028.

In detail the announcement names a basic tax-free allowance of 12,564 euros for 2027 and 12,900 euros for 2028, child benefit of 267 and 272 euros per month respectively, and an employee lump-sum allowance rising from 1,230 to 1,430 euros. At the upper end a new bracket of 47 percent from 280,000 euros of annual income is added, while the top rate of 45 percent is to apply from 250,000 euros in future. On the ministry's calculation, families with two children would keep over 600 euros more per year.