Germany considers ending tax exemption for long-term crypto holdings

The German government is planning to reform its tax system for Bitcoin and other cryptocurrencies starting in 2027, Cointelegraph reported. Finance Minister Lars Klingbeil announced the policy to change the virtual asset tax method during a press conference on the 2027 budget on April 29. Under current German law, cryptocurrencies sold within one year of acquisition are subject to tax, but capital gains on assets held for more than one year are tax-exempt. This policy has made Germany a leading European country favorable to long-term investors. Cointelegraph noted that while Klingbeil did not directly mention the tax exemption for long-term holdings, industry groups such as the German Bitcoin Association believe the government is highly likely to target the exemption first in its efforts to expand crypto tax revenue.