Germany’s Cabinet Approves Draft €590 Family Insurance Limit for 2027

Germany’s Cabinet has proposed raising the standard monthly income limit for free family coverage in statutory health insurance to €590 in 2027, a threshold that does not cap crypto sale proceeds.

The Cabinet approved a draft adjustment to social-insurance figures Oct. 7. If the Bundesrat approves the ordinance, the standard ceiling would rise to €590 a month from €565. The change is scheduled to take effect Jan. 1, 2027. The monthly reference amount used in the formula would increase to €4,130 from €3,955 in 2026, or €49,560 from €47,460 annually. The standard ceiling is one-seventh of the monthly reference amount.

The eligibility test covers regular monthly total income for spouses, registered partners and children who meet statutory conditions. The €590 amount is the standard ceiling; a separate limit applies to people with marginal employment. It is an eligibility measure within Germany’s statutory health insurance system, not a tax exemption or a ceiling on crypto transactions.

The eligibility test and the tax treatment of crypto sales are separate. A one-time gain from a private disposal transaction does not count as regular total income for family-coverage eligibility. Privately held crypto disposed of no more than one year after acquisition can qualify as private-sale income under German tax rules; the period includes a sale exactly one year after purchase. Germany’s tax treatment can also turn on ETN contract terms.

The €1,000 tax exemption applies only when the combined total gain from all qualifying private-sale transactions in the calendar year is less than €1,000. It applies to the aggregate across qualifying transactions, not separately to each asset or only to crypto sales, and it is not a deduction from a larger total.

Insurance status also affects contributions. For employees with compulsory coverage, private-sale gains from privately held crypto are outside the contribution bases listed in Section 226 when tax law classifies the gain as private-sale income. For voluntarily insured members, contribution rules include gains from private sales under Sections 22 and 23 of Germany’s Income Tax Act. Crypto is not specifically named in that rule, so whether a particular crypto gain is included depends on its tax classification.

A crypto sale above €590 does not automatically trigger a contribution or loss of family coverage; the figure measures regular monthly income for the standard family-coverage test. The ordinance is scheduled to take effect Jan. 1, 2027, if the Bundesrat approves it.