Germany Considers Scrapping Exemption on Crypto Gains

The German government is considering a significant shift in cryptocurrency taxation that would eliminate the current exemption on capital gains for digital assets held longer than one year.

This proposal, part of Germany's broader fiscal consolidation plan for the 2027 federal budget, aims to close budget gaps and stabilize public finances ahead of 2027.

The current law exempts capital gains from crypto sold after one year, but the new proposal would make all gains taxable, regardless of holding period. The exact tax rate has not been specified, but this move signals a tightening of the regulatory environment for German crypto investors.