Germany Considers Ending 1-Year Tax-Free Bitcoin Holding
Germany currently allows investors to avoid capital gains tax on Bitcoin through a tax-free holding rule after one year. The Left Party and Green Party have pushed proposals to end this tax-free Bitcoin holding period and align crypto taxation with other capital incomes. Both bills were rejected by a Bundestag majority, leaving the one-year exemption intact. Meanwhile, the AfD party has positioned itself as pro-Bitcoin, seeking to recognize the cryptocurrency as strategic technology and protect it from higher taxes. This political divide highlights ongoing debates over Germany crypto tax policy and could shape future regulation of Bitcoin and other digital assets.
Neutral
While eliminating the tax-free Bitcoin holding period could have created bearish pressure by reducing after-tax returns and discouraging long-term investors, the Bundestag’s rejection maintains the status quo. The decision provides regulatory certainty for traders, making it neutral for short-term price action. In the long term, ongoing political debates signal potential future shifts in Germany crypto tax policy. Traders should monitor legislative developments, as any revived proposals could influence market demand and holding strategies for BTC.