Germany is considering ending the tax-free treatment of Bitcoin held for more than 12 months, with the proposed cutoff set for purchases after December 31, 2026.
Under the draft law, crypto sales would become taxable regardless of how long the assets are held 📅
The proposed system would apply a 25% withholding tax plus solidarity surcharge, while the first €1,000 of annual gains would remain tax-free 💶
Losses could also be offset against other gains, creating a more standardized treatment alongside shares and dividends 📊
The proposal would particularly change the position of long-term holders, who currently can sell after one year without tax on the gains.
The government expects the measure to generate €160M in 2028 and up to €350M by 2031 💰
However, the legislation still needs approval from the cabinet, Bundestag and Bundesrat, so the current rules remain in place for now ⚖️
Today's Pill - Germany's proposed reform could mark a major shift from crypto-friendly long-term holding toward a more conventional capital-gains taxation model, but the final outcome still depends on parliament 🔄
Under the draft law, crypto sales would become taxable regardless of how long the assets are held 📅
The proposed system would apply a 25% withholding tax plus solidarity surcharge, while the first €1,000 of annual gains would remain tax-free 💶
Losses could also be offset against other gains, creating a more standardized treatment alongside shares and dividends 📊
The proposal would particularly change the position of long-term holders, who currently can sell after one year without tax on the gains.
The government expects the measure to generate €160M in 2028 and up to €350M by 2031 💰
However, the legislation still needs approval from the cabinet, Bundestag and Bundesrat, so the current rules remain in place for now ⚖️
Today's Pill - Germany's proposed reform could mark a major shift from crypto-friendly long-term holding toward a more conventional capital-gains taxation model, but the final outcome still depends on parliament 🔄