Current Tax Plans

This post is also available in: Deutsch (German)

Current Status of the Political Discussion on the Tax Holding Period

The tax treatment of Bitcoin and other cryptocurrencies is increasingly becoming a political issue. While Germany has been considered a comparatively crypto-friendly jurisdiction, some parties are now calling for fundamental changes to the existing regulations.

This page provides an overview of:

  • the current legal situation,
  • possible future tax models,
  • open political questions,
  • as well as the positions of the major parties.

The Current Legal Situation in Germany

Currently, the following applies to private individuals in Germany: Gains from the sale of cryptocurrencies are tax-exempt after a holding period of one year.

Anyone who buys Bitcoin or other cryptocurrencies and holds them for at least twelve months can currently realize gains tax-free. Sales within one year, however, are considered private disposal transactions and must be taxed.

This regulation applies exclusively to private individuals and not to businesses.

Why Cryptocurrencies Are Currently Treated Like Gold

The current tax treatment is based on other non-income-generating assets such as:

  • gold,
  • art objects,
  • collectibles,
  • or precious metals.

The reason: Bitcoin—like gold—does not generate ongoing income such as:

  • dividends,
  • rental income,
  • or interest.

For this reason, cryptocurrencies have not been treated like stocks, but rather as private economic assets or digital assets. This classification was a key factor in Germany being considered an internationally attractive jurisdiction for Bitcoin investors.

What Changes Are Currently Being Discussed?

Several parties and political actors are currently discussing the abolition of the tax holding period for cryptocurrencies. The core question is: Should Bitcoin be taxed like stocks in the future?

Two possible models are fundamentally under consideration.

Model 1: Taxation Like Stocks (Capital Gains Tax)

Under this model, gains from cryptocurrencies would be taxed regardless of the holding period. The taxation would work similarly to stocks:

  • 25% capital gains tax
  • plus solidarity surcharge
  • possibly plus church tax

The effective tax burden would thus be approximately 26–28 percent.

The advantage of this model from a political perspective:

  • easy comparability with stocks,
  • predictable tax collection,
  • automated withholding by banks and brokers.

Critics, however, point out:

  • Bitcoin differs structurally from stocks,
  • no ongoing income,
  • no companies or issuers in the case of Bitcoin,
  • significant bureaucratic burden.

Model 2: Taxation According to Personal Income Tax Rate

Some voices are even calling for gains from cryptocurrencies to be fully taxed at the personal income tax rate. In this case, depending on income, significantly higher tax burdens could arise:

  • 30 %
  • 35 %
  • 42 %
  • or even more at the top tax rate.

Critics see this as a massive burden, particularly for private savers and long-term investors.

When Could a New Crypto Tax Take Effect?

One of the most important open questions is: Would a new regulation apply retroactively?

According to current assessments, true retroactive taxation is considered legally problematic. Transitional arrangements or cutoff date models are more likely. Various scenarios are being discussed.

Option 1: Grandfathering for Existing Purchases

All cryptocurrencies purchased before a certain date would retain the previous tax treatment.

Example:

  • Purchases before January 1, 2026 remain tax-free after one year,
  • new purchases from 2026 onward would be taxed differently.

This model is considered the most likely politically and legally.

Option 2: New Tax Regime Starting from a Fixed Calendar Year

The government could determine: new rules for new purchases apply from January 1, 2027.

The advantage:

  • businesses and investors would have lead time,
  • technical systems could be prepared.

Option 3: Entry into Force Upon Legislative Approval

A new regulation could take effect from the moment the law officially enters into force. However, this model would create considerable uncertainty, as investors and businesses would have little planning security.

Is True Retroactivity Likely?

Complete retroactive taxation of existing Bitcoin holdings is currently considered rather unlikely. The reason:

  • legitimate expectations,
  • legal certainty,
  • possible constitutional issues.

Many investors made their investment decisions based on the currently applicable legal situation. A subsequent change could be legally challengeable.

Which Parties Hold Which Positions?

The political discussion surrounding the tax treatment of Bitcoin and cryptocurrencies has intensified significantly in recent months. Several parties have now formulated concrete proposals or political demands. The following overview summarizes the current state of public positions.

Alliance 90/The Greens

The Greens are currently among the most determined advocates for abolishing the tax holding period for cryptocurrencies. In a draft bill, the party calls for:

  • abolition of the one-year holding period,
  • taxation of all gains regardless of holding period,
  • taxation at the personal income tax rate.

“As a result, income from private disposal transactions of crypto assets will be taxed at the personal income tax rate regardless of the holding period.”

This would have significant consequences:

  • long-term Bitcoin savers would be affected,
  • private retirement savings would be more heavily taxed,
  • and even long-held holdings would become taxable.

Further reading:

SPD

The SPD is increasingly positioning itself in favor of stronger taxation of cryptocurrencies. Federal Finance Minister Lars Klingbeil in particular has made it clear on several occasions that a change to the existing regulation is being examined. According to current statements, a concrete draft bill is to be presented as early as July.

Within the SPD, arguments frequently cited include:

  • additional tax fairness,
  • equal treatment with other capital investments,
  • as well as possible additional government revenue.

Critics, however, point out that there are no reliable scientific analyses yet on what additional revenue would realistically be achievable.

Further reading:

CDU/CSU (Union)

The Union’s position is currently being intensely discussed. Publicly, parts of the CDU/CSU have recently positioned themselves against new crypto taxes and emphasized that Germany must remain an innovation-friendly jurisdiction.

At the same time, however, there are also statements and political signals suggesting that different views exist within the Union. Critics therefore fear that the previous position could still be softened in the context of possible coalition or budget negotiations.

The crucial question is therefore: Will the Union stick to its previous position in the long term?

Further reading:

The Left

The Left holds a significantly more critical stance toward Bitcoin and cryptocurrencies. In addition to calls for:

  • stronger regulations,
  • additional tax burdens,
  • and abolition of the holding period

more far-reaching measures have also been discussed, including:

  • exit taxation,
  • stronger control of crypto assets,
  • as well as more extensive restrictions.

The party often views cryptocurrencies primarily from the perspective of:

  • wealth inequality,
  • financial market regulation,
  • and tax avoidance.

Further reading:

AfD

The AfD generally expresses a more positive view toward Bitcoin and digital assets. However, there is no detailed public demand from the party regarding the specific tax treatment of the holding period. The party is generally considered critical of additional burdens or stronger interventions in the crypto market. Explicit support for new crypto taxes is not currently evident.

FDP

The FDP is traditionally considered comparatively technology- and innovation-friendly. Although the party is no longer represented in the German Bundestag, it has regularly advocated for:

  • innovation-friendly regulation,
  • technological openness,
  • and an attractive Germany as a business location

in the past. An explicit demand for abolishing the holding period is not known from the FDP. The party would likely view additional tax burdens rather critically.

The Political Debate Is Not Yet Decided

Despite numerous demands and discussions, there is currently no enacted law abolishing the tax holding period. However, the coming months could be decisive. In particular:

  • possible draft bills,
  • budget negotiations,
  • coalition talks,
  • as well as public political pressure

will significantly influence whether Germany maintains its previous crypto-friendly course or acts significantly more restrictively in the future.

That’s precisely why now is the right time to get involved in the political debate.