Germany's federal government just dropped its 2027 budget draft and they want to kill the one-year tax-free holding period for Bitcoin.
Right now, if you hold bitcoin for more than 12 months in Germany, your gains are completely tax-free. The new proposal would tax Bitcoin gains the same as stocks and funds at a flat ~25% regardless of how long you've held it.
They're calling it "modernization." It's a revenue grab. Germany is staring down a €98 billion deficit and expects to squeeze ~€2 billion out of Bitcoin holders to plug the hole.
The coalition is split. The SPD wants the holding period gone. The CDU/CSU has said there's "no reason" to change existing rules. Cabinet vote is July 6, so this isn't law yet.
Austria tried the same move in 2022. Bitpanda's co-founder said it created "hardly any additional benefit" while piling on bureaucracy. Capital just moved to friendlier jurisdictions.
Gold and collectibles still get favorable holding-period treatment under German law. Singling out Bitcoin while leaving comparable assets untouched raises real equality concerns.
The proposal was even packaged alongside "sin taxes" on alcohol, tobacco, and sugar. That's how the German government sees Bitcoin.
Germany sold 50,000 BTC in July 2024 at ~$57,000. Bitcoin is worth multiples of that now. They already proved they don't understand this asset. Now they want to make sure their citizens can't benefit from it either.
If this passes, expect capital to flow to Switzerland, Portugal, and everywhere else that doesn't punish people for holding sound money.
Right now, if you hold bitcoin for more than 12 months in Germany, your gains are completely tax-free. The new proposal would tax Bitcoin gains the same as stocks and funds at a flat ~25% regardless of how long you've held it.
They're calling it "modernization." It's a revenue grab. Germany is staring down a €98 billion deficit and expects to squeeze ~€2 billion out of Bitcoin holders to plug the hole.
The coalition is split. The SPD wants the holding period gone. The CDU/CSU has said there's "no reason" to change existing rules. Cabinet vote is July 6, so this isn't law yet.
Austria tried the same move in 2022. Bitpanda's co-founder said it created "hardly any additional benefit" while piling on bureaucracy. Capital just moved to friendlier jurisdictions.
Gold and collectibles still get favorable holding-period treatment under German law. Singling out Bitcoin while leaving comparable assets untouched raises real equality concerns.
The proposal was even packaged alongside "sin taxes" on alcohol, tobacco, and sugar. That's how the German government sees Bitcoin.
Germany sold 50,000 BTC in July 2024 at ~$57,000. Bitcoin is worth multiples of that now. They already proved they don't understand this asset. Now they want to make sure their citizens can't benefit from it either.
If this passes, expect capital to flow to Switzerland, Portugal, and everywhere else that doesn't punish people for holding sound money.
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