The Left and Green parties are pushing to outlaw Germany’s tax break on long-held crypto.
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for the removal of tax exemptions on long-held crypto assets, argue that the current tax-free rule for Bitcoin is outdated and should align with broader capital income taxation frameworks.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.
