Germany considers eliminating bitcoin tax exemption starting in 2026
Germany is considering modifying the tax treatment of bitcoin and other crypto assets, particularly affecting purchases made after December 31, 2026. The proposal would eliminate the current exemption that allows selling assets after more than a year of holding without taxes. This initiative, analyzed by the German Ministry of Finance, is linked to the federal budget for 2027 and the financial plan until 2030. The reform would make the acquisition date crucial for investors, as assets purchased before the deadline would remain under the current regime. The legislation could come into effect in 2027, with the first tax withholdings starting in 2028. Currently, a high-income investor selling cryptocurrencies before a year may pay up to 42% in taxes, while the new scheme would reduce that rate to around 26%. For those benefiting from the exemption after holding their assets longer, the change would mean moving from a 0% rate to approximately 26%. However, the proposal is still under evaluation and may undergo modifications before becoming a definitive norm.
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