A proposal by Germany’s Green party to abolish the one-year tax exemption on crypto gains was rejected by the Bundestag on May 20, 2026, keeping the country’s favorable tax treatment for long-term crypto holders intact. The Bundestag’s Finance Committee recommended against the draft law, which would have taxed Bitcoin and other crypto asset profits under normal income-tax rules regardless of holding period. Only Die Linke supported the measure.
The current German tax law, in place since 2018, allows private investors who hold crypto assets for more than one year to sell them entirely tax-free. The Greens’ bill, formally introduced as document 21/05752, argued that ending the exemption could generate at least €5 billion per year for states and municipalities. The draft also cited a Frankfurt School of Finance and Management study estimating €11.4 billion in foregone tax revenue from untaxed crypto gains in 2024.
Despite the revenue figures, coalition parties were unconvinced. SPD lawmaker Michael Schrodi indicated the government preferred to wait for Finance Minister Lars Klingbeil’s own proposal on crypto taxation rather than adopt the Greens’ approach. The rejection means German investors can continue to realize gains tax-free after a one-year holding period, providing short-term clarity for both individuals and crypto businesses. The broader debate over crypto taxation in Germany remains unresolved, however, and the Finance Ministry may still introduce an alternative plan in the future.
