world
German Government Drafts Plan to Tax Cryptocurrency Gains After Any Holding Period
The German government proposes abolishing the tax-free holding period for cryptocurrencies in its 2027 budget draft. Gains would be taxed regardless of duration under rules aligned with traditional capital gains. The reform requires further legislative approval.
DI
washingtonpost.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
The German government plans to abolish the one-year tax-free holding period for cryptocurrencies, @disclosetv reported. Under the proposed changes in the 2027 budget draft, gains from cryptocurrencies would be taxed regardless of how long they were held. The reform would align cryptocurrency taxation with traditional capital gains taxes.
In Germany, cryptocurrencies held as private assets are completely tax-free if sold after a holding period of more than 12 months. This treatment has made them attractive for long-term investors compared to other European nations. The new rules would eliminate that exemption.
Tax experts argue that categorizing cryptocurrencies like stocks lacks solid justification. The reform may also result in decreased tax revenue due to potential offsets of cryptocurrency investment losses against stock gains. The proposal remains under consideration and requires further legislative approval.
