Germany may end tax break on one-year crypto holdings
Germany is considering eliminating the tax exemption for cryptocurrencies held for over one year as part of its 2027 budget.Summary
Germany is considering a significant change to its cryptocurrency tax laws as part of the 2027 federal budget. Currently, under Section 23 of the Income Tax Act, crypto assets are treated as private assets, meaning gains are tax-free if held for more than one year. Finance Minister Lars Klingbeil has indicated that these rules will be revised, with speculation that the one-year exemption will be removed to align crypto taxation with that of stocks and ETFs.
Proponents of the reform, including Co-Pierre Georg of the Frankfurt School Blockchain Center, argue that the current loophole results in massive lost revenue, estimated at approximately €11.4 billion in 2024. Conversely, industry leaders like Bitpanda CEO Eric Demuth and the German Bitcoin Association oppose the move, arguing it increases bureaucracy and unfairly penalizes long-term investors. A final decision is expected by early July.
(Source：Crypto Briefing)