German government wants to abolish the holding period for cryptocurrencies

In Germany, cryptocurrencies held as private assets are completely tax-free if you sell them after a holding period of more than 12 months. This makes them highly attractive for long-term investors compared to other European nations.

The German government now plans to overhaul the taxation of Bitcoin and cryptocurrencies, aligning them with traditional capital gains taxes.

This reform would eliminate the existing one-year holding period for tax-exempt sales. Under the proposed changes in the 2027 budget draft, gains from cryptocurrencies would be taxed regardless of how long they were held. Critics, including tax experts, argue that simply categorizing cryptocurrencies like stocks lacks a solid justification.

Furthermore, the new system may result in decreased tax revenue due to potential offsets of cryptocurrency investment losses against stock gains. The reform is still under consideration and requires further legislative approval.