Germany considers imposing capital gains tax on crypto

The German government has included a proposal to impose a capital gains tax on cryptocurrencies as part of its financial savings plan for the 2027 federal budget, BeInCrypto reported. The move could eliminate the current tax exemption on capital gains for investors who hold cryptocurrencies for more than one year. Germany's Federal Ministry of Finance disclosed the plan in a monthly report, specifying that the crypto tax adjustment is part of a fiscal consolidation policy agreed upon by the coalition government. Under current German law, Section 23 of the Income Tax Act, capital gains from the sale of cryptocurrencies held for over 12 months are not taxed. Conversely, if sold within a year, gains are subject to income tax of up to 45%, with an exemption for annual capital gains under €1,000.