German finance panel rejects Greens’ plan to tax long-held crypto

Germany’s parliamentary Finance Committee voted down a Green Party proposal to end the one-year tax exemption for cryptocurrencies, leaving gains on coins held more than 12 months tax-free.

The bill, introduced by Bündnis 90/Die Grünen, sought to treat crypto gains like ordinary capital income by removing the 12-month holding-period rule. Committee members rejected the proposal after objections from four other parliamentary groups.

Lawmakers from the CDU/CSU opposed the measure on fairness grounds, arguing it would tax cryptocurrencies differently from comparable stores of value such as precious metals and foreign currencies and could affect Germany’s crypto-friendly standing.

The AfD rejected the bill on broader fiscal grounds, contending the state should reduce taxation and focus spending on core public functions including domestic and foreign security and the justice system. The SPD supports taxing crypto in principle but will wait for Finance Minister Lars Klingbeil to present his legislative plans before backing specific measures.

Die Linke supported the Greens’ initiative but flagged significant administrative burdens in the draft and the absence of a cap on offsetting losses from crypto trades, a gap it warned could substantially lower expected revenue.

The Greens cited research from the Frankfurt School Blockchain Center estimating up to €11.4 billion in additional annual tax revenue if the exemption were removed and used roughly half that figure in their calculations. The study estimated German crypto investors realized about €47.3 billion in gains in 2024, with nearly two-thirds of those gains outside taxation because of the holding-period rule.

The committee’s decision keeps the one-year exemption in place while the EU’s Markets in Crypto-Assets (MiCA) rules introduce new reporting requirements for investors across Europe that take effect in 2026. SPD officials will await Klingbeil’s proposals, and lawmakers may revisit the issue once national plans or the new reporting regime affect enforcement or compliance conditions.