Germany Implements EU Crypto Tax Reporting Rules Starting in 2026

Germany has decided to implement an EU directive mandating the recording of crypto transactions. This is also intended to combat tax evasion from January 1st, 2026.

The governing coalition under Chancellor Friedrich Merz has so far paid little attention to issues concerning the crypto industry. But largely unnoticed, the Bundestag decided last week that crypto transactions will be “recorded for tax purposes” from January 1st, 2026.

Germany is thus implementing the EU directive DAC-8, according to a statement from the Bundestag. Providers of crypto services will therefore have to automatically report transactions involving Bitcoin and other cryptocurrencies to the tax authorities. The official parliamentary newspaper headlines: “Crypto investors should also pay taxes.”

New crypto rules in Germany aim to curb tax evasion

It is estimated that hundreds of euros in profits from cryptocurrency trading are siphoned off from tax authorities in Germany every year.

The German Tax Union (DSTG) is now calling for at least 500 additional specialist positions. The DAC-8 directive is also intended to ensure international data exchange on crypto transactions; for example, crypto exchanges will be subject to reporting requirements in the future.

Is the principle of holding period allowing tax exemption for crypto now also in jeopardy?

A crucial cornerstone of German tax policy regarding Bitcoin and other cryptocurrencies must be held for at least one year. The Greens and The Left Party, from the opposition, criticize this “special approach.”

The governing coalition of the CDU/CSU and SPD has so far remained silent. However, observers note that with the most complete possible “tax recording” of crypto transactions, the way would technically be clear to abolish the one-year holding period for crypto assets.

Investors in Bitcoin and other cryptocurrencies should pay attention to DAC-8 from 2026 onwards

For you as an investor, essentially nothing changes initially, provided you properly declare your crypto trades for tax purposes. The tax authorities in Germany will simply have their own data, which they can compare with your declarations. However, anyone attempting to avoid taxes will have to expect more pitfalls

Conclusion: Germany is tightening its measures against crypto tax evasion

With DAC-8, the German government remains true to its course of viewing the crypto industry not as an opportunity, but rather as disreputable. Once again, the focus in connection with Bitcoin and other cryptocurrencies is on tax evasion, while blockchain solutions, for example in the area of ​​notary services, no longer seem to play a political role.

Whether the CDU/CSU and SPD are prepared to abolish the holding period and thus tax privileges for crypto remains to be seen. The upcoming “tax registration” is not yet a threat to tax-compliant investors, but it does impose additional documentation obligations, especially on smaller crypto exchanges and platforms.

__

(Featured image by TabTrader.com via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLCOK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.