Germany moves to end crypto tax exemption

3 min read

The German finance ministry has placed a change to cryptocurrency taxation on its savings list for the 2027 federal budget, potentially ending the current rule that makes gains tax-free after a one-year holding period under section 23. The cabinet set a spending frame for 2027 and agreed consolidation measures including roughly €4 billion a year in structural savings and a revenue package that mentions crypto tax changes alongside levies on plastics, sugar, alcohol and tobacco. Industry groups warned firms could relocate to friendlier jurisdictions such as Portugal, while parliament will now review the draft and decide the final regime.

Germany may end the one-year crypto tax exemption in 2027.