We are here to help you with all questions about naturalization, residency rights, and the legal implications of the planned change in the law. Anyone currently planning to become a naturalized citizen after three years should seek advice in good time to meet deadlines and avoid potential disadvantages.

What exactly changes regarding naturalization?

The "supercharged naturalization" introduced in 2024, which allowed naturalization after just three years of residence, is about to be abolished. This regulation was aimed at particularly well-integrated individuals with German language skills at C1 level and active social engagement. The coalition agreement between the CDU, CSU, and SPD explicitly announces the abolition of "supercharged naturalization" for 2025.

Our immigration lawyers will assess whether accelerated naturalization is still possible and provide comprehensive advice on your options. Schedule a personal legal consultation now!

What remains in the naturalization law?

The reduction of the standard minimum residence period for naturalization from eight to five years, already introduced in 2024, remains unchanged. Dual citizenship will also continue to be possible and will remain the norm. According to the coalition agreement, other key components of the citizenship law reform will also be retained.

When will the abolition of turbo naturalization come into effect?

The coalition agreement between the CDU, CSU, and SPD initially represents a political declaration of intent and has no immediate legal effect. The planned abolition of naturalization after three years still has to be implemented through a legislative process in the Bundestag. Until then, the current regulation will remain in place. However, it is expected that the new government will soon present a draft bill amending citizenship law.

Act now: Naturalization after 3 years will soon be abolished

Anyone who currently meets all the requirements for naturalization after three years should consider whether a timely application makes sense. Due to the upcoming changes, it is advisable to seek advice from experienced immigration lawyers early on in order to meet deadlines and secure your chances of naturalization.

Our lawyers will assess your individual situation and show you how you can still benefit from "supercharged naturalization." Schedule a consultation now!

Der Beitrag Einbürgerung nach 3 Jahren: Geplante Abschaffung 2025 – Das sollten Betroffene wissen erschien zuerst auf R&U.

Following the first delivery in 2023, the tax authorities in North Rhine-Westphalia (NRW) again received structured user data from a German-based crypto platform in September 2025. These data sets contain information on account IDs, deposits and withdrawals, and movements between wallets. For the authorities, these are valuable pieces of the puzzle for identifying tax-relevant transactions. This is not an arbitrary search of all crypto accounts, but rather a request for information under the German Tax Code.

German tax rules for private crypto investors

The German tax regime is comparatively friendly for private investors: Anyone who holds crypto assets—whether currencies or other tokenized assets—for more than a year is generally exempt from taxation. There is also an exemption limit of €1,000 for private sales during the year.

Nevertheless, many investors run into trouble – often not out of malicious intent, but due to the underestimated complexity of the transactions. Coins change exchanges, are moved to hardware wallets, tokens are split, swapped, or loaned to protocols. The result: transaction chains that are almost impossible to reconstruct without proper documentation.

Special features of the attack

The attack was highly targetedThe attackers analyzed the victim's wallet structure in detail and tailored the attack precisely to their positions in the Venus Protocol. Evidence suggests that Deepfake videos were used to make fake identities appear credible.

Another feature: Despite using a Hardware wallet The attack was successful. The reason was the manipulation of the frontend, which caused the victim to sign correctly but unknowingly confirm a malicious transaction.

Specialized software for blockchain analysis

The tax authorities' analysis is no longer manual. Specialized software for blockchain analysis and AI-supported data processing clusters wallet movements, recognizes patterns, and links them with the KYC data collected by the platforms. Even peer-to-peer marketplaces, where not every counter-position is obvious, provide sufficient signals to filter out anomalies.

From 2026, new EU reporting requirements for crypto service providers will also standardize cross-border data flows.

Which transactions are interesting?

Tax authorities must weigh costs against benefits. Cases where the transaction volume is significant become particularly interesting. As a rule of thumb, the larger the flows, the higher the likelihood that an audit is worthwhile. Smaller investors aren't automatically off the hook, but realistically have a lower priority.

What is decisive is not just the absolute amount of profit, but often the sum of the movements and their structure: short holding times, frequent trades, transfers between many wallets and exchanges.

Test questions for crypto investors

Every investor should ask themselves the following questions:

• Holding periods: Have I held my crypto for more than a year? Can I document transfers between my wallets without a purchase or sale transaction?
• Prizes: What profits did I make in a calendar year? Losses from another year cannot be offset directly; they must be declared separately.
• Exemption limit: Am I exceeding the exemption limit of €1,000 per calendar year? This limit applies cumulatively, not per individual transaction.
• Completeness: Is it possible to compile a traceable transaction list for each tax year (deposits, withdrawals, purchases, sales, transfers, staking/lending/airdrops, etc.)?
• Plausibility: Does the chronological order make sense—especially for transfers between exchanges and wallets? Is there evidence of inventory, such as bank statements or platform exports?
• Consistency: Do statements, year-end balances, and declared profits/losses match, or are there unexplained gaps?

Transaction costs, splits, or defective exports are particularly critical. These require structured, traceable reports from available sources (exchange exports, wallet explorers, account statements, emails regarding deposits and withdrawals).

What should affected crypto investors do?

In cases of tax evasion, the tax office can make retroactive demands for up to ten years – in practice, this means that in 2025, offenses dating back to 2015 could still be affected.

Normally, the assessment period is four years (five years in the case of careless tax evasion), but in cases of suspected tax evasion, the ten-year period applies. In serious cases, criminal law threatens not only back payments but also severe penalties. Anyone who has not yet correctly declared the affected years should not underestimate the risk but should seek professional help immediately.

In this case, it is advisable to consult an experienced tax advisor and – if there are indications of criminal proceedings – a lawyer specialising in criminal tax law.

Der Beitrag Finanzamt prüft Krypto-Transaktionen: Was jetzt jeder Investor wissen muss erschien zuerst auf R&U.