Germany Eyes End to 1-Year Crypto Tax Exemption in 2027

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

, 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.