Germany Scraps Tax-Free Bitcoin Rule for Long-Term Holders

Germany is set to scrap its tax-free rule for Bitcoin holdings, which has allowed investors to sell their coins after a year without incurring any capital gains tax. A draft bill proposes introducing a flat 25% tax on gains from crypto held for more than 12 months, regardless of how long they've been held. The change would affect investments purchased from January 1, 2027, onwards.

The current exemption has made Germany one of the most attractive jurisdictions for long-term Bitcoin holders. However, the new proposal aims to bring cryptocurrency gains in line with those from securities held in a traditional brokerage account. The bill still needs parliamentary approval before it can take effect.