2024

Bitcoin

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<p>Germany's <a href="https://x.com/Bundestag" rel="noopener noreferrer nofollow">@Bundestag</a> Finance Committee has voted down a draft bill from the Green Party that would have removed the country's longstanding tax exemption on crypto assets held for longer than one year. The vote cements, at least for now, one of Europe's most investor-friendly <a href="https://x.com/search?q=%24BTC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$BTC</a> tax rules.</p>
<h2 id="how-the-vote-broke-down">How the vote broke down</h2>
<p>Only Die Linke sided with the Greens. The CDU/CSU, AfD, and SPD all voted against the bill, though for different reasons. The CDU/CSU argued the proposal would have created new tax inequities by treating crypto differently from comparable assets like precious metals or foreign currencies. The AfD opposed any new tax measures on principle, while the SPD said it agrees with the underlying goal but wants to wait for Finance Minister Lars Klingbeil's own proposals before moving to legislate.</p>
<p>The Greens leaned heavily on a study by the Frankfurt School Blockchain Center to make their revenue case. <cite>Co-Pierre Georg, Director of the Frankfurt School Blockchain Center, estimates Germany may have missed roughly €11.4 billion in crypto tax revenue in 2024 alone.</cite> The Greens cited this figure and then halved it for conservatism in their bill.</p>
<h2 id="what-remains-in-place-and-what-comes-next">What remains in place, and what comes next</h2>
<p><cite>Germany currently treats cryptocurrencies as private assets, similar to gold or collectibles, and under Section 23 of the Income Tax Act, investors pay no taxes on gains if they hold assets for longer than one year.</cite><cite>That rule has helped position Germany as an attractive location for long-term crypto holders, though policymakers increasingly view the exemption as outdated and expensive.</cite></p>
<p>The legislative defeat does not close the debate. <cite>Finance Minister Lars Klingbeil has announced that crypto taxation will be revisited as part of the 2027 federal budget.</cite><cite>No final decision has been made yet, but the government is expected to finalize its plans by early July.</cite> Separately, <cite>starting in 2026, gains from <a href="https://x.com/search?q=%24BTC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$BTC</a> and other digital assets will no longer rely solely on voluntary tax reporting, with a new legal framework introducing automatic reporting of crypto transactions to tax authorities.</cite></p>
<p>For now, long-term holders in Germany keep their structural advantage intact. But with Klingbeil's proposals still in the pipeline and automatic reporting set to tighten enforcement, the window for the current rules may be narrowing.</p>
<p><b>Sources:</b><br><a href="https://cryptobriefing.com/german-crypto-tax-reform-2027/" rel="noopener noreferrer nofollow">Crypto Briefing: Germany may end tax break on one-year crypto holdings</a><br><a href="https://zevedi.de/en/efinblog-the-crypto-holding-period-germanys-most-unnecessary-tax-privilege/" rel="noopener noreferrer nofollow">Frankfurt School / ZEVEDI: The Crypto Holding Period, Germany's Most Unnecessary Tax Privilege</a><br><a href="https://cryptoticker.io/en/crypto-tax-2026-germany-automatic-reporting/" rel="noopener noreferrer nofollow">CryptoTicker: Crypto Tax 2026 in Germany, Automatic Reporting Goes Live</a></p>

Germany's Bundestag rejects Greens' Bitcoin tax bill, tax-free holding rule survives

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