Germany Rejects Green Party Plan to End Crypto Tax Exemption

Germany’s Finance Committee has officially rejected a proposal from the Green Party to remove the country’s long-standing crypto tax exemption for digital assets held longer than one year. The decision keeps Germany among Europe’s most crypto-friendly jurisdictions as Bitcoin and other cryptocurrencies remain free from capital gains tax after a 12-month holding period.

The proposal, introduced by Bündnis 90/Die Grünen, argued that the current tax rule was originally intended for physical collectibles and traditional assets, not modern digital currencies. The party claimed the exemption allows billions of euros in crypto profits to go untaxed each year.

Several political factions opposed the measure for different reasons. The CDU/CSU argued the proposal would create unfair treatment by taxing cryptocurrencies differently from comparable assets such as gold and foreign currencies. The party emphasized that Germany’s attractive crypto tax framework has helped support innovation and investor confidence in the digital asset sector.

The AfD also rejected the bill, saying Germany should reduce taxation instead of expanding it. According to the party, the government should focus spending on essential public services rather than increasing taxes on crypto investors.

Meanwhile, the SPD signaled it may revisit the issue later but prefers to wait for Finance Minister Lars Klingbeil to introduce broader crypto tax policies. The debate comes as the European Union continues implementing stricter crypto regulations under the MiCA framework.

Only Die Linke supported the Green Party proposal, although it criticized the draft for creating administrative challenges and failing to limit loss-offset deductions from crypto trading.

The Greens cited research from the Frankfurt School Blockchain Center estimating Germany could generate up to €11.4 billion annually through crypto taxation. Despite the projection, lawmakers ultimately voted against the measure, leaving Germany’s one-year crypto tax exemption unchanged heading into 2026.