Germany proposes 25% tax on long-term bitcoin gains

Germany's finance ministry has proposed ending the tax-free gains treatment for long-term bitcoin holders, seeking to tax crypto like stocks. Under the new draft bill, coins bought on or after January 1, 2027 would face a flat 25% tax on sale, replacing the current exemption that lets assets held for over a year be sold tax-free.

Existing holdings keep the current tax treatment, so coins already held can still qualify for tax-free sales after a 12-month holding period. The proposal still requires parliamentary approval and would mark a significant change for German retail investors who have long relied on the long-term holding exemption. No timeline for the legislative process was disclosed.