AfD Bitcoin Tax Victory Strengthens Party's Position

The Alternative for Germany (AfD) party's strong showing in Saxony-Anhalt has injected fresh momentum into Germany's contentious debate over Bitcoin taxation.

The AfD secured nearly 44% of the vote and 39 seats in the state parliament, but fell short of an outright majority. In a surprising move, co-leader Tino Chrupalla urged CDU lawmakers to work with his party to create a 'center-right conservative majority.'

The AfD has long been opposed to efforts to remove Germany's one-year tax exemption for privately held Bitcoin and other cryptocurrencies.

Germany's government plans new crypto tax legislation for 2027, although the final mechanism has not yet been disclosed. Chainalysis estimated that Germany generated $24.1 billion in potentially taxable on-chain crypto activity in 2025.