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

The German Finance Ministry has proposed ending the country's tax-free Bitcoin holding period, which has made Germany a popular destination for cryptocurrency investors. The move would replace the current one-year tax exemption with a flat 25% capital-gains tax, starting in 2028.

Crypto bought after January 1, 2027, would be subject to the new tax regime, while long-term holders of existing coins or those purchased before that date would still enjoy the old exemption once they clear a twelve-month holding period.

The draft bill is now circulating among other federal ministries for review and will require approval from the cabinet and the Bundestag before becoming law. The proposal aims to bring crypto in line with how Germany taxes stocks, bonds, and other assets under its 25% flat capital-gains regime.