Germany is considering ending its 1-year crypto tax exemption from 2027 as part of broader fiscal reforms.
Crypto News
Germany is weighing a significant overhaul of its cryptocurrency tax rules starting in 2027, with the country's one-year tax-free holding period emerging as the most likely target for reform. Finance Minister Lars Klingbeil said at an April 29 press conference that the government wants to tax cryptocurrencies differently, targeting an additional 2 billion euros ($2.3 billion) in revenue. The announcement also cited measures against financial and tax crime.
Under current German law, private investors owe no tax on cryptocurrency gains from assets held for at least one year before selling. This exemption, known as the "Haltefrist," has made Germany one of Europe's more favorable jurisdictions for long-term Bitcoin (BTC) holders. Tax advisory firm Blockpit describes the rule as a structural advantage for retail investors, particularly those who hold assets across multiple market cycles.
Industry Groups Warn of Competitive Damage
Klingbeil did not name the holding period specifically in his April remarks. Industry groups including the German Bitcoin Association say the exemption is the most probable target if the government's revenue goals from crypto are to be met. Finance ministry guidance issued in both 2022 and 2025 confirmed that the one-year rule also applies to coins used in staking and lending.
Robin Thatcher, a Bitcoin and crypto tax accountant, told Cointelegraph that removing the 12-month exemption would significantly weaken Germany's standing as a crypto destination. He said other countries should be adopting the policy rather than Germany moving away from it.
The proposed changes are part of a broader fiscal package aimed at closing a 98 billion euro ($115.2 billion) deficit. The same package includes cuts to health spending and pension outlays, as well as new levies on alcohol and tobacco. Thatcher said investors and entrepreneurs pay attention to how crypto is grouped alongside such measures, as it signals the government's view of the asset class.
Austria abolished its own holding period for crypto in 2022 and now taxes gains as capital income regardless of how long assets are held. Bitpanda co-founder Eric Demuth called the move "an extremely stupid decision" in a March post on X, saying it produced more administrative complexity while delivering minimal additional state revenue. Erald Ghoos, CEO of OKX Europe, told Cointelegraph that a similar move by Germany would push activity toward offshore platforms operating outside the Markets in Crypto-Assets (MiCA) framework.
The tax debate also overlaps with Germany's implementation of the EU's DAC8 regime through the Crypto Asset Tax Transparency Act, which took effect in January and requires crypto service providers to report detailed customer transaction data to tax authorities. A Bitpanda spokesperson told Cointelegraph that any reform must protect market competitiveness and prevent migration to unregulated offshore venues.
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