Germany Rejects Greens' Crypto Tax Plan, Keeps One-Year Capital Gains Exemption

Germany's Finance Committee has voted down a proposal from Bündnis 90/Die Grünen that sought to abolish the country's one-year tax exemption for crypto assets. The decision leaves current rules unchanged: private investors can sell Bitcoin and other cryptocurrencies tax-free if they have held them for more than 12 months. Most parliamentary factions opposed the draft or held back support. Die Linke was the only party to back the proposal, while also criticizing the bill for administrative complexity and for failing to set clear limits on offsetting trading losses from crypto transactions. Under Germany's existing tax treatment, the one-year holding period has been a key feature for long-term crypto investors and has helped the country stand out in Europe. The Greens argued the exemption no longer reflects today's market, saying it was originally intended for physical items such as antiques rather than highly liquid digital tokens that can be traded globally at any time. CDU/CSU lawmakers said the bill would create fresh loopholes and raised fairness concerns, pointing to a potential mismatch in taxation between crypto and assets such as precious metals and foreign currencies. AfD also rejected the proposal, arguing more broadly against expanding tax sources. The SPD did not rule out tightening crypto taxation but said it would wait for Finance Minister Lars Klingbeil to present his own proposals before supporting specific legal changes. Earlier reports have suggested Klingbeil could revisit the one-year exemption as part of wider budget and tax planning. The Greens cited research from the Frankfurt School Blockchain Center estimating that ending the exemption could generate €11.4 billion in annual tax revenue, though the party said it used a lower figure in its own calculations to remain conservative. The committee vote comes as retail access to crypto-linked products in Germany continues to expand. ING Deutschland recently opened trading in crypto ETNs to retail clients, offering exposure to Bitcoin, Ethereum, Solana and crypto index products via standard securities accounts without requiring customers to manage wallets or private keys. Deutsche Börse has also been listing a growing range of crypto ETNs on Xetra, tracking both individual tokens and baskets of digital assets. For now, the long-term holding rule remains in place, though investors must still comply with reporting requirements and note that other crypto activities, including income from staking or lending, may be taxed differently. Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses resulting from the use of any content, products or services mentioned. Readers should exercise caution before taking any action related to the company.