Germany's Left and Green Party push to end tax-free Bitcoin holding
The Left and Green parties are pushing to outlaw Germany’s tax break on long-held crypto.
Key Takeaways
- Germany currently allows tax-free capital gains on Bitcoin and other cryptocurrencies held for more than one year.
- The Left Party and Green Party in Germany are pushing to remove this tax exemption, aligning crypto with other capital incomes.
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Germany’s Left Party and Green Party are pushing to eliminate the country’s tax-free holding period for Bitcoin, which currently allows investors to avoid capital gains taxes after holding the cryptocurrency for one year.
The Left Party, a political group proposing reforms to cryptocurrency taxation policies, and the Green Party, an environmentalist party advocating for the removal of tax exemptions on long-held crypto assets, argue that the current tax-free rule for Bitcoin is outdated and should align with broader capital income taxation frameworks.
Proposals from both parties to end the tax-free holding period for cryptocurrencies were recently voted down by a majority in the Bundestag, maintaining the existing rule that exempts crypto holders from capital gains taxes after a one-year holding period.
The AfD party has positioned itself as pro-Bitcoin, submitting motions to recognize the cryptocurrency as a strategic technology and protect it from excessive government taxation, creating a clear divide in Germany’s political landscape over crypto policy.
