NewsHK
A draft law from Germany's finance ministry proposes ending the tax exemption for cryptocurrency gains held longer than 12 months, with the change taking effect for assets acquired after December 31, 2026.
The proposal, reviewed by Handelsblatt, has not yet passed into law, but it signals a significant shift in how German investors manage digital assets.
Under the current rules, crypto assets held for more than a year are exempt from capital gains tax. Sales made within 12 months are treated as business income and taxed at rates up to 42%.
This framework has contributed to Germany's reputation as a favorable jurisdiction for long-term crypto holders. The new draft eliminates the time-based exemption entirely.
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